The growth of pharmaceutical marketplace has kept on increasing since its first discovery, and because the harmful diseases have increased so the manufacturing and sale rate of effective drugs have also increased. As a result, the global marketplace of pharmaceuticals increased a total of $934.8 billion according to the calculation made in the year 2017. Although the increase in health conditions is not the only thing that has made this marketplace growing vastly, but there’s more to its factors.
Factors Affecting the Growth of Pharma Marketplace:
Some of the factors that the size of the pharmaceutical marketplace include;
- Disease prevalence.
- Affordability of the drugs.
- Consumer attitudes towards better treatment.
- Insurance company and government (health related) policies.
- Major supply-side factor that provides availability of a proper treatment.
Reasons for Growth Rate and Changes:
- Change in Geography:
Over the previous developing years the marketplace of pharmaceutical manufacturing and drugs has increased the most till date. Although if we take a look at the highest marketplace holding regions worldwide, then the Western Europe, North America and Asia Pacific holds the top few places of covering the largest area of worldwide pharmaceutical marketplace. This growth in the marketplace of Asia Pacific has increased due to the increasing in the drug affordability which caused low-price generics to launch. Other than this, the rise of GDP per capita, programs arranged by government for health support, and rapid urbanizations have also been some main factors of growth in Asia Pacific marketplace.
- Influenced Market Growth Due to Ongoing Surrounding Changes:
With each passing day and going time, we undergo a number of societal changes that are quite frequent in our society. Now such changes don’t only affect their aspects but also the growth of pharmaceutical marketplace too. In all the varietal change playing factors of our society that affects this marketplace, drugs play a major part.
Relatively Slow Growth of the Market:
one of the reasons that have slowed down the growth of the pharma market is the slower launch of major and new products and the fact that most of the companies are taking back and restricting their investments of R&D that are mainly required in inventing the major new medicines.
- Competitive Marketplace:
Inventing pharmaceutical drugs take place over a large number of rules and regulations that work forth the patenty, testing, safety, efficacy and marketing. These laws affect the growth rate and size of the pharmaceutical market. Although there’s not all but few of the top pharmaceutical companies that work forth producing both generic and branded drugs that are competitive enough to treat diseases well in the overall marketplace. Some top companies include:
- Hoffman-La Roche
The combination of the top ten pharmaceutical companies products separately make a global sale of 30% and makes the market moderately separate from the others.
But the pharmaceutical marketplace hasn’t been working separately, but rather worked forth maintaining some deal activities together too in the recent years. Most of these mergers and partnership in the pharmaceutical marketplace are caused due to the main aim of boosting the portfolios and value of the products and along with that in increasing their reach in the marketplace too along with the services too. One good example of this is the acquisition of Merck and Idenix , where Merck was able to strengthen the portfolio of its products by including the hepatitis drugs of Idenix.