Several factors have contributed to an 8.3% year-on-year growth in the global pharma market. Some of these are a flurry of M&A’s, demand for generic drugs in emerging countries, patent expiration giving impetus to the generic drug industry etc. While these factors have brought about immense opportunities globally, the path to harness these is laden with challenges.
Sample this - New entrants who wish to take advantage of expired patents, new drug research and development often need to conduct clinical trials to gain regulatory approval. Naturally, these trials considerably increase the cost of drug R&D. In such a case, is it viable to venture into the market?
A recently concluded research study by UBM TechWeb and Wipro shows a clear trend emerging to combat this – conducting clinical trials in emerging markets. A majority of the study respondents said that they have either ventured into or have plans of conducting trials in emerging markets. The usual quartet comprising China, Brazil, India and Russia feature prominently on the destination list. South American countries like Venezuela and Argentina are new names that have been listed.
While this trend has several logistic, economic and social considerations, it could very well prove to be a vehicle of expansion for several companies. What has been your experience? Would be interesting to see views from everyone…