Big Pharma’s Expansion Into Emerging Markets - a tale of bribery and corruption

The drug industry is faced with two big challenges: First, declining prescription drug sales, especially in the United States, and second, losing patent protection for many profitable drugs. To make up for these down drifts, the industry is relying increasingly on new markets such as China and Africa. That expansion, however, is tainted by unsavory commercial practices.The Economist Intelligence Unit projects $166 billion in drug sales in China by 2017, making it a natural market for companies looking for further growth.In Africa, the size of the market is still small. However, the rapid growth of many big cities offers interesting opportunities for development. Pharmaceutical spending in Africa may reach $30 billion by 2016, from approximately $18 billion now.According to the World Health Organization (WHO), Africa has 11% of the world’s population, yet it accounts for 24% of the global disease burden.The rebound of the economies in several Latin American countries has made the region an attractive market as well for the drug companies. The Latin American market is estimated at $70 billion in sales.Brazil, which is the largest market in the region, grew by 10% in 2010 and now generates sales of $26 billion, according to IMS Health, a company that provides information services and technology to the drug industry.Shady business practicesIn China, relationships between doctors and patients are under stress. One reason is the unethical relations between many doctors and severa...

Source: PharmaGossip - October 15, 2013 Category: Pharma Commentators Authors: insider Source Type: blogs