4 major trends in the global pharmaceutical industry in 2020

The arrival of 2020 not only marks the beginning of a new year, but also means the advent of a new decade, and the industry is gradually showing some new trends. Recently, a foreign pharmaceutical manufacturing website interviewed some industry executives and well-known institutions, and listed some forecasts for industry trends.

4 major trends in the global pharmaceutical industry in 2020

Innovation is unstoppable

The pharmaceutical industry is a vital and indispensable industry in every country. Although it is not as hot as IT and finance, it is an eternal theme that requires constant investment and innovation. Judging from the current innovation trends, global targeted immunotherapy is showing a clear upward trend, and the late stage of oncology drug research and development pipeline projects are showing rapid growth, as well as the exploration of new generation biotherapy and immunotherapy mechanisms, etc. Of multinational pharmaceutical companies' R & D expenditures have shown steady growth.

Demand for APIs will grow rapidly

In the past, in the API market, developed countries focused on the production of patented drugs as the main point of profit growth. This model will continue in the future. However, it should be noted that in the next 20 years, global pharmaceutical patents will expire on a large scale, the speed of listing of new patented drugs will slow down, and the variety will decline; moreover, various countries have passed the stage of barbaric growth in medical spending, and many countries have begun to control medical and medical insurance expenditure To reduce the cost of drugs, this will vigorously promote the development of the generic drug market, and at the same time drive the continuous increase in the share of generic drugs in the global drug market, and promote the rapid growth of the global demand for generic APIs. As a major import and export country of raw materials, China will usher in very good development opportunities under such circumstances.

Outsourcing cooperation continues to expand

With the continuous increase of new drug research and development time and input costs, and the impact of the sales market and the market of original drugs after the expiration of patents, global pharmaceutical companies have gradually concentrated resources on sales in order to shorten the research and development cycle, control costs, and reduce research and development risks. As well as early research in disease mechanism research, new drug target discovery, etc., his key businesses are all in the form of outsourcing. Therefore, we hope to see more alliances between packaging, transportation and contract manufacturing suppliers in the future, as well as the emergence of more large-scale CRO companies with many achievements in the field of pharmaceutical outsourcing.

M & A activity will continue to grow

In the past few years, the global M & A transaction volume of pharmaceutical companies has been steadily increasing. The existing fundamentals show that maintaining the current 10% growth rate is no problem. According to Informa's prediction, in 2020, the industry will be able to complete 260 M & A transactions. Basically, within this year, on average, one transaction will be completed every working day, but the total value of the transaction is not yet certain.

The industry estimates that oncology and rare disease drugs are still two hot M & A areas, especially in view of the lack of resources in the rare disease area and the innovation of therapies, M & A is an important way for large companies to expand the treatment field. Experts predict that Gilead and Sanofi may be companies with large trading volume, and other companies such as Amgen, Biogen, Novartis, Merck, Eli Lilly and Pfizer may also initiate mergers and acquisitions. These companies have one thing in common. They are either already undergoing industrial restructuring or need to reorganize.