Pharma marketing trends and future

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Pharma market trends and future

Global market scene Indian market scope Current scene and future marketing trends

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Global market scene

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Leading pharmaceutical companies

Pfizer GlaxoSmithKline Sanofi-Aventis Roche AstraZeneca Novartis Johnson and Johnson Merck & Co Wyeth Eli Lilly
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LEADING MOLECULES
Lipitor (atorvastatin) Plavix (clopidogrel) Advair/Seretide (fluticasone/salmeterol) Enbrel (etanercept) Nexium (esomeprazole) Remicade (infliximab) Diovan/Co-Diovan/Provas/Miten (valsartan/hydrochlorothiazide) Zyprexa (olanzapine) Rituxan (rituximab) Risperdal (risperidone)
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Global market scene

The global pharmaceutical market is forecast to grow to $929 billion in 2012, an equivalent compound annual growth rate (CAGR) of 5.5% over the next five years. In 2007 the leading therapy areas by sales were CNS with 16.5% share and cardiovascular with 15.4%. The US retail pharmaceutical market grew to $206 billion but growth rates fell due to loss of patent protection on some blockbusters France, Germany and the UK together accounted for almost 50% of all European pharmaceutical sales in 2007. The top 100 blockbuster drugs generated sales of $252.5 billion, accounting for 35.5% of the total pharmaceutical market. There were a total of 61 companies generating pharmaceutical sales in excess of $1 billion in 2007
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 IMS Health has recently reviewed its previous forecast and stated that the global pharmaceutical market would grow between 4% and 6% to reach a value of $825 Billion in 2010, as reported by PHARMEXEC.

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 Total pharmaceutical sales from the top 10 companies accounted for more than 40% of the total market. CNS disorders constitute the leading therapeutic category of the US pharmaceutical market

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INDIAN PHARMA MARKET SCENE

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BOOMING PHARMA SECTOR IN INDIA

According to a new study Booming Pharma Sector in India by RNCOS, the Indian pharmaceutical sector has posted double digit growth rate in the last five years and is presently accelerating at a pace twice more than the global pharmaceutical market. In near future, the potential and opportunities in this market will rise by several folds. In fact, the Indian pharmaceutical market is expected to grow at a CAGR of 16% between 2007-08 and 2011-12.

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Six trends that will drive the growth of the Indian pharma market over the next decade
1. Doubling of disposable incomes and the number of middle-class households; 2. Expansion of medical infrastructure; 3. Greater penetration of health insurance; 4. Rising prevalence of chronic diseases; 5. Adoption of product patents; and 6. Aggressive market penetration led by smaller companies.

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OTHER MAJOR TRENDS

(i) Mass therapies will continue to remain important despite the shift to specialty drugs, (ii) Generics will dominate, while the share of patented drugs will increase to about 10 per cent by 2015 implying a market size of $2 billion (currently almost nil) and iii) tier-II markets will register high growth, while tier-I markets will continue to hold ground by providing significant opportunity.

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Pharma Market in Asia Pacific to Post Double Digit Growth Oct 19, 2009

. As per a new research study Asia Pacific Pharma Sector

Analysis by RNCOS, it is forecasted that Asia-Pacific pharma market will grow at a CAGR of over 12% during 2010-2012. The growth will mainly be driven by low cost factors, changing regulatory environment and increased private sector investments in the industry. Currently, the market is characterized by high growth of generics, and the same trend will continue in near future also.

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 The region will become the global API production hub in next few years, backed by low cost manufacturing, favorable regulatory environment and current advancements in the production technology. Also, the market will show significant changes in terms of sales and marketing model, which will be changed into tenderbased model, favouring the sales of low cost drugs, and thus resulting in intense competition among key players.

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 The pharma sales are growing rapidly in countries like India, China, Malaysia, South Korea and Indonesia. This growth is mainly attributed to -the increase in disposable income along with the emergence of several health insurance schemes. the availability of low cost drugs, thus providing a further boost to the market growth

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MNCs Showing Interest in Indian Pharmaceutical Sector Oct 16, 2009

The Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst & Young have jointly published a report which states that the Indian pharmaceutical industry is projected to be worth $20 Billion by 2015 and will be counted among the worlds top 10 industries, as reported by INTERNATIONAL BUSINESS TIMES

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 High growth projection for the Indian pharmaceutical sector is primarily based on the changes in Indias patent structure, decentralization of filing process, digitization of records and inclusion of patent examiners.

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 Moreover, the trend of patent acquisition has picked up momentum tremendously in the country as 35,218 patent applications in total were filed during the last fiscal (2007-08). 6040 domestic and 29,178 foreign applications. The new patent regime has made pharmaceutical companies to see India as a preferred destination for every activity associated with the pharmaceutical industry such as research and development, contract manufacturing, generic drug research, conduct of clinical trials and co-marketing alliances.
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 Another important supporting factor for the industry is large section of high income class that will grow to 25 Million by 2015 from 10 Million 2009. This section will drive the affordability of expensive patented drugs.

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 Indias pharmaceutical market has the potential to grow to a size of $20 billion by 2015, trebling from 2005 levels and becoming one of the top 10 drug markets in the world, a McKinsey & Co study has said. Incremental growth in the country over the next eight years will thus be the third largest opportunity globally, only after the US and China.

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Current marketing scene

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 Its no longer just what brands are saying to physicians or what physicians are saying to patients. Now all the different stakeholders are talking to each other, The key means of facilitating this change has been the Web and especially the growth of social media,the use of which has now exploded. Brands face dynamic environments with many influencers,

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 Brand managers need to observe, gauge and seek to influ-ence those influencers. Therefore, we need a new model that helps us make sense of a complex world of communications.

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Future marketing trends

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THE CHALLENGES
The biggest challenge is going to be the building of medical infrastructure and in ensuring greater insurance penetration

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PHARMA INDUSTRY FACING PRICE SQUEEZE

The pharmaceutical industry across the world is facing a price squeeze with a number of developed countries taking steps to reduce overall spend to tide over the economic crisis. The pricing squeeze has been an addition to other critical issues in the industry, including lack of innovation, impact of generics and regulatory issues. This has led companies to rationalize costs within the organizations, be it in sales and marketing, manufacturing or R&D. Viewed in this light, the benefits for India would be in areas of outsourcing and clinical trials
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GROWTH DRIVERS
Obesity and diabetes in this country and the link between them and cardiovascular disease and then add, you know, joint degeneration if you become older, these are humongous costs which obesity creates. Its projected by 2025 to go over a trillion diabetes also over a trillion, cardiovascular disease over a trillion. Then you have Alzheimers disease or dementia and cancer, which [includes] age-related cancer. Aging and poor balance of calories and metabolism create enormous costs in the future

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Influence on Prescribing: Index Values

1. Sales representatives 2. Medical information from the manufacturer 3. Key opinion leaders 4. Clinical trials in journals 5. Physicians own experience 6. Patient feedback 7. Social networks 8. Formularies or guidelines 9. Cost constraints 10. Affordability of co-payment
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 Primarily in the US, the growth of direct to consumer advertising has changed the very nature of the whole influence relationship. Because of great patient education and new channels, such as the Internet, we have started to see more informed patients communicating back to physicians. Brand choice no longer results from physicians dictating to patients. It now is based much more on a dialogue between knowledgeable patients and their doctors.

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 Communication is shifting From Direct to ConsumerTo Conversations with Consumers.

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 which single Item in the list below has the biggest influence on physician choice of brand?, the answers are as follows: 7% chose Sales Representatives 67% chose Physician Experience, Peers, KOLs 1% chose Patients 23% chose Payers (including affordability to patient) 1% chose Social Media

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 Conclusions To get the model "right," especially in the complex world of healthcare, it is essential to take an inclusive approach: 1) consider multiple stakeholders,including physicians, patients, payers,and other influencers and 2) brainstorm across silos and agree on key influence drivers: Who (the influencer), How (the channel), What (the message or the context). This process ensures the findings are relevant, credible, and worthy of informing strategy.

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Becoming customer-centric
After more than 20 years in pharmaceutical sales and marketing, most recently as a marketing director at Merck Sharp & Dohme, Geoff Blundell knows a thing or two about pharma customers. And becoming more customer-centric, he says, quite simply relies on understanding what customers need. Customer centricity requires a deep understanding of the customer, rather than just your own brand, he says. And you must provide a solution to whatever that need is, based on the products and services you offer. It leads to a very trusting and mutually beneficial type of relationship.
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Becoming customer-centric
For pharma to really understand different physicians perspectives, we have to understand how they choose to run their businesses, Blundell says. If we have a product thats very complex and requires a lot of titration, for instance, it wouldnt suit the high volume doctor. But it would be something to talk about with the doctor who seeks to be a more comprehensive provider. The better we understand our customers on these three levels their clinical, professional and personal needs the better we can see how the products we have fit or not into solutions for our customers

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Conclusion
POTENTIAL OF INDIA,S PHARMACEUTICAL INDUSTRY CAN BE REALISED FULLY IF THE GOVT. PROMOTES AN INCLUSIVE INSUTANCE SYSTEM THE MARKET CAN EVEN GROW TO 24$ BILLION IF GROWTH PROVES MORE RAPID

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THANK YOU
We need to advance medicine, help to advance medicine. Thats our purpose in society. And we want to bring better therapies. The rest will be taken care of.

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