Which are the most promising EM? We pave the way for you.
The Universal Declaration of Human Rights defines the right to health as essential for an adequate standard of living. They mention four criteria which are to be met by every nation: availability, accessibility, affordability and quality for patients. The World Health Organization (WHO) points out awareness as another crucial element.
Health care consulting assumes an important role in a globalizing world. To understand why that is, we need to understand what health care is, how big the health care market really is, and to have a closer look at current health care trends and the opportunities that come along with them.
Health care and health care systems
Health care is generally seen as a crucial factor in promoting physical and mental health for people. Access to health care and health care systems differs widely across the countries of the world. The WHO states that every health care system needs a good financing mechanism, a well-trained body of workers, intact health facilities and solid information to rely on for policies and decisions.
Health care and the economy
One cannot underestimate the significance of health care in the economies of Western countries. In OECD countries, the health care industry made up an average of 9.3% of each country’s GDP in 2011. The USA was at the top of the list with a share of 17.7% and Germany still consumes at an above average of 11.3%.
Ever-increasing life expectancy in wealthy nations goes hand in hand with the growth of the health care industry. In this regard, Japan and Switzerland are leading the world but age averages of OECD countries in general are unprecedented. In 2011, average life expectancy exceeded 80 for the first time in history.
Health care financing
How a health care system works depends on the country. Funding is mainly divided into five different types.
In most countries you can find parts of all types, and health care systems are changing over time. For health care consultants it is important to be well informed about the latest developments and changes in their countries of expertise.
The global market
Since more and more pharma companies wish to open new subsidiaries all over the world, they see themselves confronted with issues they did not face in the past, when companies were naturally located in their home countries, with production sites in close proximity. Today, the question is whether location matters or whether it has lost its importance. Outsourcing and offshoring have become well-known phenomena, occurring primarily for financial savings. To be able to compete in the global market and make the most of one’s company or brand, it can be attractive to expand one’s business to various countries abroad. Today many companies become global players. This term is used for corporations that own production facilities or provide service in more than one country. They can also be called transnational corporations or stateless corporations.
For such ventures, such as going abroad with a product or company, it is advisable to turn to a consultant who has expert knowledge and innovative ideas.
Why Emerging Markets?
The so-called BRICS countries—including Brazil, Russia, India, China and South Africa—are the fastest growing national economies in the world. Their economies have significant regional influence, as well as on a global scale. The BRICS countries meet annually since 2010. To grasp the importance and influence of these countries, one has to look at the number of people living in these five huge nations—three billion people or about 40% of the entire world population. Their combined GDP makes up almost 20% of the gross world product. For decades, the healthcare market in emerging countries has been growing faster than their GDP. Since the population is constantly rising within BRICS countries, they will lead in the demand for medical devices, diagnostic equipment and other pharma products in the years to come. Sales for pharmaceuticals doubled between 2006 and 2011, and they continue to rise today.
Focusing only on the pharma Industry in the BRICS countries, it may not necessarily make sense to enter some of these markets. China, for example, has very difficult and tough registration policies and is thus not the easiest market to enter.
Brazil on the other hand has proved to be quite the opposite, and has mostly well-regulated registration policies. But, most importantly, one must remember that Emerging Markets are not limited to the BRICS Countries. There are many more, including the TRIUMPH countries (Turkey, Russia, Indonesia, Ukraine, Mexico, the Philippines).
To cope with the demand created by so many people, emerging markets need to work cost-efficiently and to offer great opportunities for foreign pharma companies to enter their markets.
It is expected that two-thirds of global pharma growth is going to happen in the following 21 emerging countries: Mexico, Turkey, Poland, Vietnam, Ukraine, Colombia, Thailand, Venezuela, Argentina, Egypt, Indonesia, Romania, Saudi Arabia, Pakistan, Nigeria, Algeria and the BRICS. According to the IMS health evaluation, Algeria, Colombia, Saudi Arabia and Nigeria are the latest additions to the relevant countries emerging in the pharma sector. The BRICS countries remain in the top 10, leading revenues in pharmaceuticals. It is expected that the global market share of those twenty-one emerging countries is going to rise to 33% by 2017. Such a rapid growth of the health care sector offers a lot of room for innovations and opportunities.
Entering emerging markets is profitable for two reasons: the growth of the middle class and, at the same time, the awareness that many governments do not have sufficient resources to supply the health care needs of the population. The privatization of many health care sectors draws foreign companies to those markets.
Health care consulting
In the health care sector, in particular which, as previously stated, is enormous and can be confusing at times, it is important for business decisions to make use of the knowledge possessed by specialists. For a health care company that focusses on its products and on doing its best in its home country, it can be an enormously risky operation to work with people in a country with different regulations, demands, history and culture without having any background knowledge.
Since all national economies work differently it is easy to understand why the health care sector is no exception and also works differently. Different people and regions have different needs, preferences and consumer behaviors. To make communication easier and make promising business deals, it is a big advantage to have an experienced consultant at one’s side who will navigate you through meetings, decisions and deals. A consultant saves you an enormous amount of time and works for you while allowing you to keep concentrating on regular daily business.
Why Chameleon Pharma Consulting
Chameleon Pharma Consulting can help you identify the perfect partner for you and your company among Emerging Markets. We conduct detailed market analysis and develop tailored international strategies for you. We guide you through registration processes and help you with regulatory questions. We guarantee successful and functioning partnerships and profitable business expansions. As a consulting firm, we benefit from our expert knowledge and the longtime experience of our trusted partners all over the world. Our international and dynamic team is proud of our intercultural competence and worldwide network. We work, while you continue to concentrate on your daily business.