Slow growth in pharmaceutical sales in recent years has spurred considerable interest and investment into emerging global markets: Brazil, Russia, India, China and South Korea (BRICS).
The main reason behind this trend is cost efficiency of establishing off-shore manufacturing sites in those countries; and also setting them as new target markets, given their ever evolving demographics, healthcare affordability and accessibility.
During the past 6 years, company revenue compound average growth rates (CAGR) in Russia, India, China and South Korea averaged at 7.2%, exceeding that of US where a CAGR of 6% was observed.
GlobalData Insights and Analysis
Research was conducted to assess the potential and examine current trends in the pharmaceutical industry in Brazil, Russia, India, China and South Korea.
Deal trends show China and India are ahead of all other regions with respect to the number of M&A and licensing agreement deals per year, and annual deal value. Nevertheless, Brazil was calculated to have the highest value per deal overall.
When comparing products marketed in the past 10 years, every emerging region displayed an interesting focus shift in its pipeline portfolio, both in terms of therapy areas and development in product type.
Infectious Disease is no longer the primary therapy area of focus in these countries, nowadays the majority of development is in oncology. Furthermore, a sharp increase in biosimilar development has been observed with respect to the past 10 years.
GlobalData Senior Analyst within Sales Analytics Chloe Thornton suggests this analysis has “highlighted some interesting and driving topics that will promote activity in Brazilian, Russian, Indian, Chinese and South Korean pharmaceutical markets. Given the progress being made in these regions in terms of healthcare accessibility, insurance coverage and drug regulation, they remain as a relatively untapped resource.”
While it is established that these markets do show promising growth, this potential could be hampered by certain region-specific challenges.