The Filipino government is battling with the international pharmaceutical industry for ground in the market, which up until recently experienced a free-market policy with no price regulations in place.
The Philippines paradoxically has one of the highest drug prices in the world, especially considering the majority of the population cannot afford them. Changes brought about by the controversial Cheaper Medicine Act have impacted the Philippines pharmaceutical market in a number of areas, including IP laws, competition and drug price control mechanisms.
Under the Act, 200 drugs have seen price reductions by up to 50% since August 2009. This represents 12-15% of the total market for essential drugs. The majority of drugs involved are new products in the market, whose prices are disproportionately higher in the Philippines in comparison to the Asia-Pacific region. They also tend to be drugs which are top sellers, the most expensive, and have limited generic competition.
Further reading - A detailed report on the pharmaceutical market in the Philippines is available from Espicom: The Pharmaceutical Market: Philippines (published April 2010)
Showing posts with label generic competition. Show all posts
Showing posts with label generic competition. Show all posts
Friday, 7 May 2010
Thursday, 28 January 2010
UK - How will the economic recession affect the UK pharmaceutical market?
Reductions in health spending and industry job cuts could have an impact on the market, but an ageing population and a health service under pressure will guarantee an increasing demand for pharmaceuticals.
The UK pharmaceutical market is set to experience moderate growth over the coming years, tempered slightly by the effects of the economic recession. Public spending cuts are likely, as public debt continues to increase, and health expenditure is set to suffer as a result. In 2010 the NHS budget is £102.3 billion, but this could fall by 2.5 to 3.0 per cent per annum from 2011/12. This follows a period of huge growth in health spending under the Labour government, which has seen the NHS budget almost triple. However, the NHS is well equipped to deal with the financial shortage, as it has seen marked improvements in recent years.
Many pharmaceutical companies have announced job cuts worldwide in recent months, in an effort to reduce costs, and many staff based in the UK are likely to be affected. These companies include Eli Lilly, GlaxoSmithKline, AstraZeneca and Pfizer. Job cuts are to be expected considering the economic climate, as well as upcoming challenges for these companies, including patent expiries, increased generic competition and slowing innovation.
A number of key pharmaceutical and biologic products are going off patent in the coming years, which will strengthen the generics market. Despite budget constraints, increased pressure on the NHS to cope with the health needs of an ageing population will lead to a rise in demand for pharmaceuticals, and a willingness to invest in new therapies to ensure effective treatments.
Further reading - An in-depth analysis of the UK pharmaceutical market is available from Espicom: The Pharmaceutical Market: United Kingdom (published January 2010)
The UK pharmaceutical market is set to experience moderate growth over the coming years, tempered slightly by the effects of the economic recession. Public spending cuts are likely, as public debt continues to increase, and health expenditure is set to suffer as a result. In 2010 the NHS budget is £102.3 billion, but this could fall by 2.5 to 3.0 per cent per annum from 2011/12. This follows a period of huge growth in health spending under the Labour government, which has seen the NHS budget almost triple. However, the NHS is well equipped to deal with the financial shortage, as it has seen marked improvements in recent years.
Many pharmaceutical companies have announced job cuts worldwide in recent months, in an effort to reduce costs, and many staff based in the UK are likely to be affected. These companies include Eli Lilly, GlaxoSmithKline, AstraZeneca and Pfizer. Job cuts are to be expected considering the economic climate, as well as upcoming challenges for these companies, including patent expiries, increased generic competition and slowing innovation.
A number of key pharmaceutical and biologic products are going off patent in the coming years, which will strengthen the generics market. Despite budget constraints, increased pressure on the NHS to cope with the health needs of an ageing population will lead to a rise in demand for pharmaceuticals, and a willingness to invest in new therapies to ensure effective treatments.
Further reading - An in-depth analysis of the UK pharmaceutical market is available from Espicom: The Pharmaceutical Market: United Kingdom (published January 2010)
Thursday, 17 September 2009
USA - Eli Lilly to Cut 5,500 Jobs by 2011
Eli Lilly is cutting 5,500 jobs by the end of 2011 as part of restructuring, it was announced in September 2009.
The company, based in Indiana, expects the plans to cut annual costs by US$1 billion.
The reorganisation will split the company into five business areas: oncology, diabetes, established markets, emerging markets and animal health. Lilly also plans to establish a Development Centre of Excellence, which will focus on the development of new medicines.
Although Lilly is yet to confirm where the job losses will take place, they will exclude strategic sales additions in emerging markets and Japan.
The company attributed the restructure to upcoming challenges for the company, including patent expiries, increased generic competition, rising costs and slowing innovation.
Lilly is currently preparing for the patent expiry of its top-selling antipsychotic drug Zyprexa (olanzapine), while generic competition has reduced sales of its chemotherapy Gemza (gemcitabine) since it went off-patent.
Further reading - A detailed analysis of the US pharmaceutical market is available from Espicom: The Pharmaceutical Market: USA (published June 2009)
The company, based in Indiana, expects the plans to cut annual costs by US$1 billion.
The reorganisation will split the company into five business areas: oncology, diabetes, established markets, emerging markets and animal health. Lilly also plans to establish a Development Centre of Excellence, which will focus on the development of new medicines.
Although Lilly is yet to confirm where the job losses will take place, they will exclude strategic sales additions in emerging markets and Japan.
The company attributed the restructure to upcoming challenges for the company, including patent expiries, increased generic competition, rising costs and slowing innovation.
Lilly is currently preparing for the patent expiry of its top-selling antipsychotic drug Zyprexa (olanzapine), while generic competition has reduced sales of its chemotherapy Gemza (gemcitabine) since it went off-patent.
Further reading - A detailed analysis of the US pharmaceutical market is available from Espicom: The Pharmaceutical Market: USA (published June 2009)
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