Emerging Business Models in the Pharmaceutical Industries ...

Factors Restraining Pharma Market
Reducing Net Selling
Price of Medicines
Reduced
Consumption
from
Childhood
Factors
Restraining
Pharma Market
Limited
Purchasing
Capacity
Source: JSB Intelligence
Market Restraints
Lower Funding
to R&D
Parallel Trade
Factors Restricting Growth
Decreased R&D funding is resulting in a lower number of
pipeline products. The lower R&D productivity in turn
keeps away investors from supporting new R&D initiatives.
Limited purchasing capacity in developing and under
developed countries, the decreasing consumption of
pharma among children due to early vaccinations, and the
constant reduction of the selling price of drugs due to
government restrictions are restraining the growth of the
pharma market.
Parallel Trade
While parallel trade has an insignificant market share, it is
resulting in losses to pharma companies and is cause for
concern especially in Europe.
Bayer has successfully opposed parallel trade in a
European court, winning the right to limit supplies of Adalat
to wholesalers in low priced countries. Pfizer has
introduced a new packaging for Lipitor, which now has a
perforated opener that cannot be re-sealed. The same
packaging could be extended to other products as well in a
bid to combat counterfeiting of drugs.
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 13