KEY PERFORMANCE
INDICATORS
GLOBAL PHARMACEUTICAL INDUSTRY The global spending on medicines is expected to reach nearly US$ 1.5 Trillion
by 2021. This is an increase of nearly US$ 370 Billion from the 2016 estimated
spending level, representing a CAGR of 4-7%.The two main drivers of this growth
will be introduction of new innovative products in the developed markets and
increased volumes of branded generics in the emerging markets. Click here for full report
The growth of a country’s pharmaceutical industry closely mirrors its general economic progress. As economies of the world demonstrate widely divergent growth patterns, industry growth is also different. However, taking a macro perspective, global pharmaceutical growth depends on worldwide economic momentum, government healthcare programmes and spending patterns. While R&D efforts will drive the introduction of new products in the market, challenges remain. For countries grappling with sluggish economies and limited resources, funding access to these medicines remains an uphill task. Each country in the world is facing these challenges and addressing them in its own way. Overall, generic products will continue to be an integral part of these efforts, targeted at striking a balance between access to healthcare and ability to fund it.
The growth of a country’s pharmaceutical industry closely mirrors its general economic progress. As economies of the world demonstrate widely divergent growth patterns, industry growth is also different. However, taking a macro perspective, global pharmaceutical growth depends on worldwide economic momentum, government healthcare programmes and spending patterns. While R&D efforts will drive the introduction of new products in the market, challenges remain. For countries grappling with sluggish economies and limited resources, funding access to these medicines remains an uphill task. Each country in the world is facing these challenges and addressing them in its own way. Overall, generic products will continue to be an integral part of these efforts, targeted at striking a balance between access to healthcare and ability to fund it.
The key trends for the next five years:
The US will continue as the world’s largest pharmaceutical
market.
New innovative products will drive the growth in pharmaceutical
spending in developed markets, but will be partly offset by patent
expiries. Growth will be driven primarily by oncology, autoimmune
and diabetes treatments.
Pharmerging markets will grow faster than developed markets,
driven mainly by rising income levels, increased healthcare
awareness, government policies directed at achieving universal
healthcare and increasing incidence of chronic ailments.
Innovation in specialty medicines will drive the share of global
specialty spending from 30% in 2016 to 35% in 2021. This increase
will be driven by the acceptance of new breakthrough medicines.
The specialty segment will be a key focus area for payers and they
are likely to focus on lowering healthcare costs and the therapeutic
value offered by such specialty medicines. The US and Western
Europe will be the key drivers of specialty medicines.
