Ethical Pharmaceuticals Market is Gaining Traction through Increased Focus on Patient-Centric Healthcare
Ethical pharmaceuticals, also known as prescription drugs, are medicinal products that are intended for use only under professional supervision. These products contain ingredients that have the potential for harmful effects, and as such require careful medical management. Ethical pharmaceuticals play a crucial role in disease treatment and management by offering medical advantages like targeted disease treatment, convenient administration, and improved patient compliance. The growing prevalence of chronic diseases and increasing healthcare investments are major factors driving the demand for ethical pharmaceuticals globally.
The Global
Ethical Pharmaceuticals Market is estimated to be valued at US$ 4.76 billion in
2024 and is expected to exhibit a CAGR of 10% over the forecast period from
2024 to 2031.
Key Takeaways
Key players: The
Global Ethical Pharmaceuticals Market is fragmented with the presence
of several global and regional players. Key players operating in the ethical
pharmaceuticals market are Amgen Inc, AbbVie Inc, Johnson & Johnson, Eli
Lilly and Company, Merck & Co., Inc, GlaxoSmithKline plc, Sanofi, Novartis
AG, Abbott Laboratories, Otsuka Holdings, F. Hoffmann-La Roche Ltd, Teva
Pharmaceutical Industries Ltd., Pfizer Inc, Takeda Pharmaceutical Company. The
major global players are focusing on developing novel drugs through aggressive
R&D initiatives to gain a competitive edge. For instance, in 2022, Amgen
Inc received FDA approval for its LUMAKRAS drug to treat lung cancer. Such new
product launches are helping key players expand their portfolio and strengthen
market presence.
Growing demand: Rising awareness about diseases and available treatment options has been fueling the demand for ethical pharmaceuticals. Increased healthcare expenditures in developing nations are also contributing to market growth. Further, the growing geriatric population prone to chronic diseases acts as a high-impact rendering driver.
Global expansion: Leading companies are focusing on expanding their global footprint through strategies like acquisitions, collaborations, and geographic expansions. For example, in 2021, Novartis AG acquired US-based therapeutic company The Medicines Company for USD 9.7 billion to enhance its cardiovascular portfolio.
Market key trends
Increased focus on patient-centric healthcare: Pharmaceutical firms are shifting their strategy from volume-based to value-based healthcare with more focus on patient needs. This involves developing drugs with better safety profiles, convenient dosage forms and customized treatment options. For instance, Amgen launched migraine drug AIMOVA in 2022 which offers ease of self-administration.
Growth in specialty drugs: There is high demand for specialty drugs used to treat complex conditions like cancer and autoimmune diseases. Biosimilars and targeted therapies have shown promising results with fewer side effects. Areas like oncology and immunology will drive most revenues in specialty drug segments going forward.
Porter's
Analysis
Threat of new entrants: Ethical pharmaceutical industry requires huge capital
investments for R&D and clinical trials. Regulations also pose barriers.
Bargaining power of buyers: Large buyers like governments and hospitals can
negotiate prices but individual consumers have less influence.
Bargaining power of suppliers: Key raw material suppliers possess some
bargaining power. However, industry players try to vertically integrate or find
alternative suppliers to reduce dependence.
Threat of new substitutes: New drug delivery technologies or alternative
treatment options can disrupt existing products but require extensive testing
before commercial use.
Competitive rivalry: The global pharmaceutical market is highly competitive
with major players continuously investing in R&D to develop innovative
drugs and diversify their product portfolios.
Geographical Regions
North America accounts for the largest share of the global ethical
pharmaceuticals market currently, due to high healthcare expenditure and
presence of leading industry players in the US and Canada.
Asia Pacific is poised to be the fastest growing regional market during the
forecast period, driven by rising income levels, growing medical tourism
industry and increasing healthcare investments in major economies like China
and India.
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