Drug Sale Slowdowns Across Emerging Markets

Recently, pharmaceutical companies have seen a decrease in sales growth in emerging markets — normally a prime target for the global healthcare industry given population and income increases.

Recently, pharmaceutical companies have seen a decrease in sales growth in emerging markets — normally a prime target for the global healthcare industry given population and income increases. This trend is most noticeable in China, where sales growth is at its lowest rate since 2008. Three factors have been identified as responsible for this developing market slowdown. First, economic growth in general has been slowing significantly in emerging markets; Brazil can be looked at as an extreme example of that trend. Second, governments across the world, but particularly in South Asia and the Middle East, have been putting pressure on drug prices to make pharmaceuticals more affordable for their populations. Finally, between 2013 and 2015, currency devaluations have slashed off an estimated 77% of emerging market growth, according to IMS Health. These factors mean that multinational pharmaceuticals may need to reevaluate their global strategies, returning more of their focus to American and European markets. —AZ

 

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