Current pressure on pricing for pharmaceuticals

The pressures on pricing stay strong with increased spending on advertising, while biologics keep rising

Biologics on the rise while pressure on prices rules the market

As the average age of populations keeps rising, so does the need for treatment of rare or non-communicable diseases such as Alzheimer's, cancer, diabetes or arthritis. This trend is visible in Northern America and Western Europe, but also in Japan, where people aged 65 or more represented 27% of the population in 2016.

6 out of the top 8 best-selling drugs in 2016 were biologics. The demand for biologics is set to grow at double the rate of the pharmaceuticals market.  With the expiry of patents and boost of the generics market, novel drugs are those which bring the most revenue to pharma companies. Profit margins are shrinking also due to governmental regulations of medicines and medical device costs.

In such environment, pharmaceutical companies move towards strategic supply chain solutions. Explore how packaging is a crucial part of your supply chain and how we can help you with strategic packaging solutions.

The rising need for brand visibility

With the rise of the generics market comes the pressure for intensifying advertising efforts in order to maintain sales. In the US alone, the biggest producer of branded drugs increased its advertising spending by 6% in 2016. Fighting back against the loss of patents, this trend will continue and intensify with further pricing pressures.

Our packaging strategists at DS Smith are able to provide innovative, customised solutions which help boost brand visibility. Have a look how we can help in attracting customers to your brand.

(source: Euromonitor)