Emerging market growth for pharmaceutical companies is much faster than accepted. The nature and size of the pharmaceutical industry have changed with changing economies. With population shifting to urban areas, eradication of noncommunicable diseases, and people becoming more conscious about their health has brought expansion of the pharmaceutical business.
Indian pharmaceutical industry is growing equally well and it holds the third position in terms of volume. There are numerous pharmaceutical start-ups that are coping equally well with national and international pharma business.
Key strategies for Pharma Start-ups
- Pharmaceutical collaboration is the need of hour due to global competition. Indian pharmaceutical industry should go beyond the two or three companies collaboration to manage finances. For example, a collaboration of five companies setting out 5 projects would yield efficient clinical trials and better marketing. Collaboration leads to upgraded efficiency, quality, market promotion and reliability. The collaboration follows the same rule of united we stand divided we fall.
- Gaining market is equally important for the pharmaceutical products. As per the emerging market, the focus should be on the pricing and satisfaction of the local conditions and the consumers.
For the pharma business, the concern ranges from market access for their pharmaceutical products, competition with other companies, education and funding difficulties. Thus, for the pharma business, the pharma start-ups need to define a market access covering three central areas. First is the regulatory, for getting a timely market authorization.
Second is pricing and reimbursement, which requires setting appropriate price levels and inclusions by negotiations and medical interventions. The third is the infrastructure, which requires a safe and advanced technological infrastructure with a health care system and qualified health professionals.
- Diversification of client base and depending on local and international market equally. Most of the pharmaceutical companies market the product either internationally or nationally. They fail to market the product globally. Depending on global sale and global promotion are efficient ways of growing a pharmaceutical company. The pharma business strategy should be as such that it covers the health issues faced all over the world. Focussing globally would bring about more profit as it may target exorbitant population.
- Shifting the pharma business from low values generics to high-value generics is a phenomenal strategy for start-ups. Low-value generics are copied by every second pharmaceutical company as they are easy to manufacture. At the same time, the low generics face increased competition in the local market. Contrary, the high generics are not the targets of most of the pharmaceutical companies. High values generics like the biosimilars are difficult to copy and requires expert’s hands for its manufacturing. Thus, the pharma starts-ups should focus on uncompetitive high-value generics and pharmaceutical products.
- The pharmaceutical industry should focus on R&D department more. Innovating and satisfaction of the customer should be the priority. New pricing programs, marketing strategies, increasing patients, following the global trends are some of the minute areas that need to be focused.