The main driver in the selection of an emerging market would be the active role the respective Government plays in providing healthcare to its citizens.
CHENNAI, JUNE 26:
Emerging markets are critical for the sustained growth of pharma industries, as they are likely to account for 30 per cent of the global pharmaceutical spend by the end of next year, according to a new report.
The report, ‘Emerging Market and Sustainable Growth Report 2015’, on the Indian pharmaceutical sector, revealed that innovation and technology will be important differentiators as pharma organisations try to drive growth in developing countries. The emerging markets cover nations in Africa, the Middle East, South-East Asia, Brazil, Russia, India and China.
The report is the outcome of a workshop hosted by Cambridge Consultants, a global product development and technology consultancy firm. The participants were pharmaceutical companies like Novartis Vaccines India, Cipla, and Dr. Reddy’s Laboratories, among others.
Ambuj Jain, General Manager (India), Cambridge Consultants, said in the report, “In India, the prevalence of diabetes and cancer is projected to rise by 25-40 per cent over the next 10 years. This shift gives pharma companies an opportunity to market their global products in emerging markets.”
The main driver in the selection of an emerging market for the pharma companies would be the active role the respective Government plays in providing healthcare to its citizens, since it facilitates direct dealing with the government.
The report states that key barriers like accessibility and affordability should be addressed. Improvements in affordability will be driven by rising disposable income and increasing insurance coverage.
Growth in accessibility will come from increase in Government spending, medical infrastructure, and new business models for rural areas.
The report says that lack of good diagnostic centres and higher cost for diagnosis leads to under-treatment. Collaborating with diagnostics companies to develop minimally invasive diagnostics instruments will be beneficial in the long-run.
But the idea that healthcare innovation in emerging markets has to focus only on cost reduction was dismissed by experts. The example of smartphones and how their adoption has penetrated into the society was highlighted. This suggests that ‘value’, at the right price point, is more relevant in driving adoption of new technologies.
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