Pharmaceutical Industry BRIC–States Will not Save Big Pharma Single-Handedly
The so–called BRIC–states Brazil, Russia, India and China are no magic bullet for the international pharmaceutical industry: A new study by Frost & Sullivan in fact indicates that we might have set our ambitions a little to high... According to the study, companies will have to estalish regional partnerships and engage in dialogue to be succesful in these markets.
Import taxes, protective laws and strong competion from locally produced generics press global pharma multis on the BRIC–markets, Frost & Sullivan analysts say. Despite the economic strong growth, these markets are no longer seen as the 'promised land' as which they were praised during the last decade.
But also the players in the pharmaceutical industry have not yet adapted to the local conditions, the study says: Neither are remedies designed for the specific desires and needs of these markets, nor are all sectors sufficiently developed. “For example the educational standrad of doctors outside the big Tier-1 cities is often not the same as in developed states. Missing partnerships with local administrations, NGOs and trade organisations are another important aspect and demonstrate the dommittment of companies to these states", explained Reenta Das of Frost & Sullivan.
The analysts expect that succes in these economies will not be achieved with cheap bulk products, but by adapting to the nature and development of the local markets. In fact, innovative technologies and business models might developed locally might also be adapted in Western staes as well.