Pharma in 2012

What can the industry expect in 2012? More of the same?

The challenges are still the same for pharma in 2012, as they were in 2011. Most of the big pharma companies have their big drug products coming of patent this year; the precipice of the patent cliff is looming! Has all the restructuring, realigning, reprioritising worked? This year will give the answer to that question. Some people are skeptical. In a recent survey of industry professionals, conducted by the Economist Intelligence Unit, 17% of respondents did not feel that pharma companies had done enough to meet the coming challenges.

But it is not all bad news for the industry. The same survey showed that approvals for new drugs are on the increase. Not at levels previously seen in the past, but it shows that companies that have focused on bolstering their pipelines are now beginning to see returns on that effort. In-licensing and externalisation is starting prove a successful strategy. This can only be good for patients and industry.

Pharma will continue to embrace the emerging markets in 2012. Cementing strategies and increasing their presence in Asia. It is expected that by 2015, some 25% of all global healthcare spend will come from Asia, up from the 14% in 2006. This will put Asia on a par with Western Europe.

Companies will find the going difficult in European markets. An aging population coupled with increased pressure on EU countries to control budgets means that European pharma sales is expected to fall in 2012. In the US a fragmented healthcare system, younger population and the expansion of health insurance to more of the population will provide some protection for healthcare and pharma budgets. It is expected that the US will continue to account for 40% of global sales. However, with the presidential election around the corner, this is by no means a certainty.

It certainly has the makings of an interesting year for the industry. We will be watching and reporting on what happens as best we can, and what this may mean for us chemical engineers working within pharma.

This piece was written using source material from an article published on 9 January 2012 by The Pharma Letter (subscription required).