Wednesday, September 26, 2018

High Costs Of Drug Approval Might Slow Down The Pharmaceutical Drugs Market (Companies Included: Novartis AG, Sanofi S.A, F. Hoffmann-La Roche Ltd., Pfizer Inc, Gilead Sciences, Inc)


The pharmaceutical industry develops drugs to diagnose, cure, treat or prevent diseases. Pharmaceutical companies produce both generic and branded drugs. Pharmaceutical drugs are subjected to various laws and regulations that deal with patenting, testing, safety, efficacy and marketing.

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The global pharmaceutical drugs market has shown decent growth in the past years with a CAGR of just over 5%. The year 2017 recorded highest ever market value in this industry as per TBRC’s inhouse consultants.

TBRC’s latest report show the historic and future trends in the market for each year with sourced reasons to support the growth claims.

The report also shows the pharmaceutical drugs market to grow at a higher CAGR by 2021 as compared to 2017, along with geographies best suited for investments with highest return rate.

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Drug approval involves a series of research stages and regulatory approvals that are often expensive. Drug approval process include about four phases of clinical trials and various stages of screening process with the regulatory body such as FDA. The costs of failed clinical trials are also high as clinical trial phases involves huge investments. For instance, according to a report by Forbes, a pharmaceutical company spends about $350 million per drug before launching it in the market, thus indicating high drug approval costs, which affected the growth of the pharmaceutical drugs market.



Companies included in the report are Novartis AG, Sanofi S.A, F. Hoffmann-La Roche Ltd., Pfizer Inc, and Gilead Sciences, Inc.


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