TRENDS IN THE WORLD PHARMINDUSTRY
We present to your attention a publication from a series of analytical reviews of the Single Distributor SK-Pharmacia LLP within the framework of the National Health of the Nation project. Taking into account the instructions of the Head of State on the need to increase the share of the country’s own pharmaceutical production in the country to 50%, as a resource plan for the implementation of the project “Development of the pharmaceutical industry of the Republic of Kazakhstan” systemic approaches are proposed by transforming the existing Comprehensive Plan and the State Program for the Development of Healthcare into the National Project “HEALTHY NATION” for 2021-2025, where the 4th direction will be “Domestic pharmaceutical industry of Kazakhstan”.
Global pharmaceuticals occupy an important place in the world economy, characterized not only by a complex structure and specificity of innovative processes, but also by high investment attractiveness and a fairly large number of jobs employed both in production and in the development of new molecules. It should be noted that the pharmaceutical industry remains a key factor in the development of the economy of many European countries and is one of the most knowledge-intensive sectors of the economy, which is associated with high-tech production processes. It should also be noted that the scale of investments in scientific research, where more than 30 new molecules enter the global market every year .
In the context of innovative opportunities and competitiveness, the export potential of countries is often considered, more specifically, their high-tech exports. The strategic development of the pharmaceutical industry is influenced by demographic and epidemiological trends: characteristic diseases determine the focus of research and development and the direction of global investment activity in the industry.
BigPharma plays a dominant role in this process, enclosing innovation processes and investing huge amounts of money in the development of innovative molecules. At the same time, while remaining a socially significant area, the pharmaceutical industry is highly dependent on regulatory decisions and the effectiveness of research and development processes management. Thus, the coronavirus pandemic has exposed the extreme vulnerability of the world community to such challenges and indicated the need to develop the pharmaceutical industry as a guarantor of drug safety.
At the end of 2020, the global pharmaceutical market can be attributed to the only markets that are actively developing and are showing active growth in the situation with the pandemic. Even before the Covid-19 pandemic, there were issues such as price pressures, results orientation, complex drug portfolios, and a tough regulatory environment. However, with challenges comes change and opportunity, with the pharmaceutical industry adapting flexibly to the future.
Analysis of trends in the global pharmaceutical industry
According to leading experts from Fortune Business Insights, the value of the global pharmaceutical industry was US $ 1.12 trillion in 2020 and will reach US $ 1.57 trillion by 2023. There is a positive trend in the average annual growth rate of 6%, in particular, due to an increase in the production of anticancer, antidiabetic and antirheumatic drugs by 12% per year. The influence of revenues and profits of the pharmaceutical sector on GDP is growing. Total sales in 2019 amounted to more than $ 2 trillion, which is about 1.4% of global GDP. Global sales of exported drugs from 116 countries cost US $ 392.9 billion. At the same time, the employment of the population in the pharmaceutical industry amounted to 4.4 million people – 0.1% of the working population of the planet.
It is necessary to note the scale of investments in scientific research, which exceeds 150 billion US dollars, while 20% of the market revenue comes from the development of R&D centers, as a result of which more than 30 new molecules enter the global market annually. According to the data of the international analytical company IQVIA, the Top 10 countries determine 79.5% of the total value of the global pharmaceutical market, where at the end of 2019 the rating is topped by the United States with a market volume of 501.2 billion US dollars.
Top 10 Pharmaceutical Markets, 2019
According to authoritative sources for the study of the pharmaceutical market, such as “PharmaBoardroom” and “Evaluate Ltd.”, the sales of the Top 10 companies “BigPharma” account for 35% of the value of the global pharmaceutical market. As the overall annual prescription drug revenue and R&D expenditures show, it is the ability of these companies, collectively, to generate results and sustain investment that ultimately helps turn new scientific and promising innovations into validated treatments. In fact, leading pharmaceutical companies are re-investing up to 20.8% of drug sales in new drug development (Figure 3). Figure 3. Top – 10 pharmaceutical companies