Pharmaceutical Companies Focus More on Oncology Market Owing to Increased utilization of high-cost targeted and long duration therapies
Globally, cancer is one of the leading causes of death next only to cardiovascular diseases. The global oncology therapeutics market was estimated at $24.9 billion in 2009 and is expected grow at a Compound Annual Growth Rate (CAGR) of approximately 3.6% between 2009 and 2017 to record a sales value of approximately $33 billion. The moderate CAGR of 3.6% can be attributed to declining cancer incidence rates in the US and in the top five countries in the EU. Few other factors such as restrictive pricing and reimbursement policies, off-label uses of anti-cancer therapies, comparative effectiveness reforms and patent expiry of major blockbuster drugs are expected to affect the growth of the market.
However, the increased use of targeted/personalized therapies such as Herceptin, first-time innovations such as cancer vaccines and longer treatment periods for growing number of patients, have contributed positively to the growth of this market.
With more than 80 molecules in the late-stage development findings of innovative treatment for niche segments and the evolution of new cancer segments, cancer therapeutics market continues to attract investments from pharmaceutical companies.
The global pharmaceutical industry is currently witnessing rapid expansion with advances in manufacturing processes, technology innovation and integration. The ever increasing financial woes of the pharmaceutical industry have provided a huge opportunity to contract outsourcing organizations to capitalize on the combined advantage of their expertise and economies of scale.
Contract research organizations will emerge as strategic partners for biopharmaceutical companies. The service models of the contract research organizations are evolving to become more functional, where services are outsourced based on the analysis of their core competencies.
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The drug discovery markets in India and China are set to grow at double digit rates, with rapid developments in the market landscape and changing market dynamics in the global pharmaceutical industry. According to industry experts,
According to GBI Research, the combined drug discovery market in both countries was more than $2.3 billion in 2009, representing a compound annual growth (CAGR) rate of 36.2% from 2004 with the market expected to grow to reach $8.2 billion by 2016.
The Large Pharmaceutical Companies are Diversifying through Inorganic Growth
The acquisitions that have occurred in the past few years show a growing trend for companies dominant in the pharmaceutical sphere, expanding beyond drugs and diversifying into medical devices in order to strengthen their product portfolios.
The patent expiration of many drugs is the most important reason for the increasing acquisition of medical device companies by pharmaceutical giants. In addition to more than 40% loss of the selling price immediately after a branded drug’s patent expiry, the entry of generics leads to a further price decline.
Pharmaceutical companies are also following the strategy of inorganic growth in order to gain immediate revenues by acquiring mid-sized medical device companies. The acquisitions will readily give them profits compared to investment in R&D activities that would delay any profits by several years. Diversification is another reasons why pharmaceutical companies are going beyond drugs to find innovative solutions to reduce the over dependence on the revenues from their drug portfolios.
Most companies rely heavily on the performance of their blockbuster drugs, but by diversifying into medical devices they now have access to a wider range of revenue generation sources
GBI Research, the leading business intelligence provider, has released its latest report, “Top 10 Healthcare Trends in 211” that provides key data, information and analysis of the major trends in the biopharmaceutical and medical devices industry. The report provides a comprehensive insight into the ten major trends in biopharmaceutical and medical devices industry in 2010. A detailed analysis of each of the major trends is presented in the report.
Visit our report store: http://www.gbiresearch.com
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