Pharmaceutical industry and R&D productivity in 2017
Since the creation of the pharmaceutical industry, research and development (R&D) productivity has had the most important and critical function. But the industry leaders, in a research carried lately, put the lack of R&D productivity among their top concerns.
In the coming years, the pharmaceutical industry will begin to change. The growth that it had been experiencing in the past few years will slowly begin to diminish. But there is no place to worry, the overall outlook for the aforementioned industry remains positive.
Many insecurities hit the pharma worldwide last year, starting with the US presidential elections, the economical fluctuations, Brexit, and the increased pressure on drug prices. So what are the opportunities and challenges for the pharmaceutical industry in 2017? Can we improve the R&D productivity? Will this be a bad year for the Pharmaceutical industry, or will the same scenario be continued?
All of these, and more, will be explained in the following paragraphs.
Worldwide Prescription Drug Sales 2017/2022 in figures:
Diminished pharmaceutical sales
In the next five years we will most likely see a sluggish growth in the pharmaceutical sales. This will most likely be because of a range of environmental issues such as patent expirations, high cost of healthcare systems and so on. Also, this lack of growth can be correlated to hepatitis B and cancer drugs which in the coming years will have less of an impact in fighting the diseases.
The market sales will slow to single digits (from 12%, to 6% and 9%) in the upcoming five years. However, the US will lead the market with 53% of all the anticipated growth within the next five years. China is still predicted to be second, with a 12% growth.
Globally speaking, the total consummation of medicines will go up by only 3%, moderately faster than population growth (1.1%).
Because of the patent expirations, a big loss is going to occur in revenue due to the continuous growth of generic drugs. The generic-drug storm will be a significant contributor to the mentioned sluggish growth. These occurrences are to be expected after the historical increment of the prices in 2015. The industry, however, must find new ways to support the growth of the industry every year, or else, a major crisis will be inevitable.
Required strategic reformation
We might have come to a point when there is a need for a strategic reformation in healthcare. Since the presidential elections are over, the new president will surely have a significant influence on the industry of pharmaceutics.
The Patent Protection and Affordable Care Act (ACA), is to be reviewed and updated. This will surely change the whole scenario and cancel or substitute the healthcare act. Whatever happens in the near future will be of paramount importance to the industry of pharmaceutics, and the market growth likewise.
Research and development (R&D) productivity and the importance in pharmaceutical industry
The development of the pharmaceutical industry is vital to the U.S. and to the whole world. Some of the largest pharma companies are placed in the United States, which makes the USA the world’s most important national market.
When it comes to medical research and development, the Unites States has always been a pioneer and a booster for the global industry. Almost 60 billion dollars are spent each year in this particular field. Even though many changes have been made in this field, this industry continues its steady growth and progress, in comparison to R&D in other fields. The high level of research is obvious, there have been many approved drugs over the last years.
Even though there have been many challenges and difficulties in the pharmaceutical industry, the research and development in this field is keeping a straight and steady line. There are many promising medicines that could be developed to fight off the most wide-spread diseases. That is why the support from the R&D management is very important and helps the pharma market return to a full thriving state.
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