Pharmaceutical Industry Faces Multiple Challenges: Future lies in Drug Pipeline Sustainability : Frost & Sullivan

Mumbai, Maharashtra, India, Wednesday, August 24, 2005 -- (Business Wire India)

High clinical development costs coupled with declining drug discovery success rates are causing productivity levels to fall in the global pharmaceuticals industry. The imminent patent expiry of several major blockbuster drugs and the related rise of cheaper generic alternatives is further exacerbating the situation. Despite this, the global pharmaceutical industry offers significant growth opportunity for participants that can build new strategic business models.

Estimated at USD 554.00 billion in 2004, the global pharmaceuticals market is forecast to register an annual growth rate of 8.2 per cent from 2004 to 2011 to reach USD 967.00 billion. Such expansion is expected, however, to be based on the ability of pharmaceuticals companies to adapt to changes in patient population, and target diseases of unmet medical need to maximize revenue potential.

If you are interested in a virtual brochure that provides manufacturers, end users, and other market participants with an overview of the latest analysis of the World Clinical Development Pipelines in the Pharmaceuticals Industry, then send an email to Surbhi Dedhia and Samantha Unnikrishnan- Corporate Communications at sdedhia@frost.com/ sunnikrishnan@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. We will send you the information via email upon receipt of the above information.

For instance, an ageing global population is poised to drive pharmaceutical drugs for indications such as macular degeneration and Alzheimer's disease. Drugs that address rising multifactorial disorders such as cancer as well as lifestyle disorders such as obesity are also likely to experience strong revenue growth.

Moreover, as patient groups become more fragmented and diagnostic methods improve, the demand for evidence-based personalized treatments is likely to increase.

“It is essential for major pharmaceuticals companies to move from the blockbuster model and adopt new strategies that cater to specific diseases areas and populations,” notes Frost & Sullivan (http://healthcare.frost.com) Healthcare Analyst Phil Webster. “To grow in this new era of evidence-based personalised medicine, companies should generate a sustainable product pipeline characterised by improved productivity and diversity.”

Market participants need to replace their dependence on a limited number of highly lucrative drug candidates with a more comprehensive and diverse product portfolio. Innovative products that focus on areas of unmet medical need and cover a broad range of disease indications are likely to underpin a strong, sustainable product pipeline. Furthermore, companies need to examine reformulations and investigate new indications for existing blockbuster drugs.

At the same time, the use of computer modelling and biomarker discovery to aid the discovery of promising drug candidates is likely to facilitate an enhanced understanding of the clinical development process and help them to make more informed investment decisions.

“Less investment will be lost through late stage drug candidate failures as more compounds succeed in the clinical development process,” elaborates Mr. Webster. “More novel techniques to identify toxic or ineffective drugs early in the development process such as the use of biological models, bioinformatics and biomarkers will drive down development costs, increase revenues and improve overall industry productivity.”

As large pharmaceuticals companies try to enhance their drug development pipelines, mergers, acquisitions and licensing agreements for individual compounds are likely to gain appeal. Mergers and strategic collaborations to invest in existing leads are also likely to diffuse the cost of potential failures, thereby preventing the draining of company resources. Looking ahead to the increasing trend towards partnerships and alliances in the pharmaceutical industry, Frost & Sullivan is organizing a premium event, “Global PharmAlliance 2005 - Becoming the partner of choice” being held at Mumbai (India) on September 30th and 1st October, 2005. A gathering of experts and leaders from Indian and global Life Sciences industry, the conference will serve as a conclave of thought leaders and insights into their learning's and also serve as an ideal platform for networking and initiation of business partnerships. With international participation expected from leading pharmaceutical companies, contract service providers this summit could be an arena for knowledge exchange in the areas of R&D, strategic partnership and outsourcing, emerging technologies in drug manufacturing, custom synthesis, clinical research, marketing and distribution, global leadership, and many more. The two day event not only focuses on giving an insight into the world of partnerships and alliances through presentations and discussions but also recognizes the companies who have been the best at partnering through the Frost & Sullivan Awards - Partner of Choice.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com

World Clinical Development Pipelines in the Pharmaceuticals Industry (F238-52)

List of key industry participants: Pfizer Inc., Johnson & Johnson Inc., Astra-Zeneca Plc, Roche Molecular Systems, Bayer Diagnostics, Bristol Myers-Squibb, Cirion Biopharma Research Inc, Life Sciences Research Inc, MDS Pharma Services, aai Development Inc, Inc, Vivometrics Inc, Omnicare Inc, Parexel International, ABC R.O., Evidence Clinical and Pharmaceutical Research, www.clinicalresearch.de, CTS Europe, Clinical Trial Operations (CTO) B.V., Aster Cephac Group, Biotrial S.A., IFE Baltic, INC Research Europe