Market Access Mexico

Mar 28, 2012 - Mar 29, 2012, Mexico City, Mexico

Market Access Mexico

Pharma Must “Change Dialogue” around BRIC Markets

Pharma companies looking to expand into emerging markets such as Brazil, Russia, India and China (BRIC) must avoid cutting corners and concentrate more on establishing value according to a new report.



The study from Frost & Sullivan advises companies that they must change their approach in emerging markets, focussing more on catering to local needs and building regional alliances in order to achieve sustainability in these markets.

So-called ‘pharmerging markets’ used to be seen as the ‘promised land’ for pharma companies who saw growth dwindling in mature markets: Frost & Sullivan partner Reenita Das commented at a recent analyst meeting that “while mature economies across the globe grapple with reducing cost, towering budget deficits and anaemic growth, the BRICs are expanding rapidly and driving the global economy.” However, she added that “although emerging markets are often touted as the way forward for healthcare companies, recent protectionism laws and fierce competition from generics may have reduced the appeal of countries such as India and China, leading some to believe they don’t have the potential that the industry once believed.

In order to recover the promise of growth, companies need to focus on the needs that are currently being overlooked in these areas, Ms Das said. “For example, the level of education and training of physicians in the BRIC countries, particularly away from the Tier 1 cities, is often a lot lower than that of physicians in mature markets. Another weak point is the lack of partnerships with local governments, non-governmental organisations [NGOs) and other trade organisations.” She emphasised that “this is really a very critical aspect and shows governments the level of commitment organisations are willing to make.”

The report highlights the changing attitude of the governments of the BRIC nations towards foreign pharma companies; there are now strict protectionist measures either in place or being proposed in all four countries, with more predicted on the horizon.

For example, China plans to introduce a fast-track approval system for new medications that would exclude firms who have not conducted clinical trials in the country.

At the same time, Brazil has introduced higher import tariffs to foster the growth of local industry. Ms Das forecast that “the success in the region will be less about emerging markets being cheap and more about how companies can capture the growth in these markets moving forward,” suggesting that “there is a real chance for the industry to innovate in emerging markets by using disruptive technology and establishing a new commercial model that has the potential to become a relevant option for use in the developed world as well.”

She concluded by stating that growth can be achieved only once companies have changed their dialogue in these pharmerging markets: “It is very clear we need to rethink emerging-market strategies and start changing the dialogue. We must move away from looking at it as a volume business in terms of large numbers of patients and demographics to more about where we can deliver the value to create the access that is required to meet demand.”



Market Access Mexico

Mar 28, 2012 - Mar 29, 2012, Mexico City, Mexico

Market Access Mexico