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From the recent revival of growth in Indian markets, pharmaceutical sector has not remained untouched. Currently the pharmaceutical industry is experiencing a boom worldwide. It is anticipated that the global level this market is expected to earn a revenue of over one trillion in revenues by the end of 2011.
Just like any other industry, pharmaceutical industry is peculiar in certain ways which has in turn shielded it from the global economic meltdown. For instance some life saving drugs and preventive vaccinations cannot be demand-supply driven for they are obligatory and basic.
One of the path-altering trends in this sector globally is steady growth of developing pharmaceutical markets in promising markets, like India and China. With a strong growth in bio-tech based drugs, the hub of pharmaceutical industry is shifting to these two economies.
Some of the apparent trends that makes pharmaceutical industry promising in the near future are astounding growth rate and , encouraging government policies, increased awareness and consciousness for health issues, and invention of more sophisticated technology are just to name a few.
The Compound Annual Growth Rate (CAGR) of pharmaceutical industry is around 8% per year, making it one of the fastest growing industries in the global marketplace. On extrapolating this growth rate, the global pharmaceutical market is expected to reach up to 1045 billion USD in 2012.
Reasons behind this amazing growth are many. Two of the most potential reasons are; one that the previously untapped markets of the Asia Pacific is emerging as one of the most money-spinning pharmaceutical markets of the future. Second raison d'être is better understanding of proper medical aid for prevention and cure of diseases. This has motivated people to consult medical advisors more frequently instead of ignoring symptoms.
This twin effect is more prominent in the emerging economies. Many of the pharmaceutical companies have taken advantage of this transition and are in endeavour of market penetration, vying for customers’ attention.
If the critiques are to be believed, this upward trend in the pharmaceutical industry is nothing more than a bubble similar to the IT and the real-estate fizz. The pharmaceutical industry is pillared upon research and development which is time consuming and costly. With the economic depression in recent years, spending on research has declined. The effect of this reduced spending will be visible after couple of years. Industry analysts are sceptical about the roof-breaking success of pharmaceutical industry worldwide.
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