Pharmaceutical Industry Analysis
The innovations in advanced biologics, rising population, and access to quality healthcare and pharmaceuticals to middle-class people worldwide are driving the growth of the global pharmaceutical industry. However, the fluctuating economy, legal issues, talent shortage, massive flow of generic medicines, and rising competition are expected to impact the growth prospect of the global pharmaceutical industry. Besides, companies in the pharmaceutical industry are facing decreasing return on investment due to price erosion in key markets. As such, companies in the pharmaceutical industry will need to foresee changing market dynamics and look for other markets to sustain growth.
The client is a pharma company based out of the United States.
As Canada is known to be one of the most profitable markets for pharmaceutical companies, the client wanted to expand their business operations to Canada. Before investing a huge sum into their expansion plan, they wanted to determine their growth potential and assess market opportunities in the Canadian pharmaceutical industry. They approached the experts at Infiniti Research to leverage their expertise in offering market intelligence engagement.
Other challenges that the client encountered were:
Government and security: As policies regarding the use of medicines varied in different countries, the client wanted to understand the policies in the Canadian pharmaceutical industry. In addition, they wanted to understand in-detail the procedure for new drug launch in Canada.
Massive flow of generic medicines: Due to the massive flow of less expensive or generic drugs in Canada, the client wanted to identify strategies to cut down on their production costs and gain a competitive edge.
Identifying the right set of customers: Before expanding their operations to Canada, they wanted to identify the profitable customers to focus on to drive sales.
Need for new and effective medicines: The client wanted to analyze competitors’ product offerings and identify drugs gaining popularity in the Canadian pharmaceutical industry. By doing so, they wanted to invest into similar drugs.
The experts at Infiniti Research followed a four-phased approach that involved:
Market scanning and monitoring analysis to understand the regulatory changes in the Canadian pharmaceutical industry. This also involved evaluating the market potential for the client’s offerings in Canada and identifying the capital requirement for setting up new production and distribution units.
Technology assessment to spot the next technological breakthrough and identify cost-effective technologies to enhance the client’s operational efficiency.
Customer segmentation analysis to segregate customers into distinct target segments and identify profitable customer groups.
Competitive intelligence solution to analyze the product and service offerings of the top pharma companies in Canada.
By understanding the current market dynamics and forecasting the potential business opportunities in the Canadian pharmaceutical industry, the client was able to devise a sound market entry plan. Also, by thoroughly understanding the procedures for launching a new product in Canada, they were able to succeed clinical trials in their initial attempt. In addition, the adoption of cost-effective technologies helped the client to automate their operations and reduce production costs. This further helped them to reduce the costs of their drugs and better compete with generic drug manufacturers.
By identifying the right set of customers, the company in the pharma industry was able to personalize their marketing and sales efforts for them and generate maximum sales. Also, a detailed analysis of their competitors’ offerings helped them to competitively price their products. Within two years of entering the Canadian pharmaceutical industry, the client was able to generate huge sales and realize profits of over 29%.