The news is shared by Canadian Health&Care Mall specalists. Canadian Health&Care Mall is one of the leading services aggregating medical products in Canada with over 15 years of experience in the field. Visit the company’s website if you want to learn more about health and healthcare: www.canadahealthcaremall.com.
Modern medicine is advancing rapidly making huge technological leaps every now and then. However, we must pay attention to other developments in the pharmaceutical industry that do not rely on dishing out new antibiotics and special all-mighty vaccines. There are several really important key recent developments that should concern every single person on this planet. All of those developments are quite interesting and beneficial to people who need efficient and affordable healthcare. We are here to talk about 3 trends that are changing the face of the whole pharmaceutical industry.
Trend #1. Going Online.
The internet was a game-changer for many industries and exploded in 2000s as the new wave of e-Commerce projects started occupying all markets. Relatively small companies with huge turnovers started to pull the blanket away from distributors relying on local land-based stores with tons of administrative expenses that elevated prices to the level of unaffordability. The world quickly caught up on the new trend that rapidly took over all possible retail domains – e-Commerce.
Thousands of big corporations and entrepreneurs decided to launch their projects and deliver high quality goods at a relatively low price trying to fight for regular customers seeking for a good balance between the quality and the price. The pharmaceutical industry lagged behind due to several reasons including the fact that many popular drugs were under licenses and manufacturers wanted to keep the exclusivity of their products and wanted to create beneficial deals with expansive land-based distribution networks. People with complicated medical conditions had to rely on local pharmacies and overpay for every single pill.
The arrival of Generics made it possible for lesser distributors to enter the market and offer their clientele good products that do not cost too much. Contemporary customers go to their favorite websites to shop for medical goods, otherwise expensive medications, and even some services. It is much more convenient for anyone to compare prices, browse catalogues, and make purchases while not even leaving the house. The internet made shopping faster and better for everyone.
Trend #2. Relying on Generics.
Just a decade ago, the whole industry resembled a tight market where huge corporations dictated all the rules and skyrocketed prices by inflating administrative and marketing expenses. For example, Ely Lilly, the creator and consequent distributor of Cialis (Tadalafil), was one of the most profitable pharmaceutical companies for a long time due to the fact that they had exclusive rights to manufacture and sell Tadalafil, a PDE5 inhibitor that was arguably a better alternative for Viagra. The demand was high as marketing slowly pushed away the demand for Viagra.
The cost of a single pill could easily buy you a pack of painkillers or a yearly supply of antibiotics. At the same time, the manufacturing cost was very low and all expenses of the company were mostly in production costs, marketing, and research/approval. Customers were overpaying for the medication despite it being a relatively cheap to produce product.
The trick was that there was no choice for a customer. Whether you wanted a cheaper off-brand version with a minor risk of getting an inferior effect or desired a premium class solution, you had to purchase the one and only Cialis. Everything changed when the license expired. The market was immediately swarmed by cheap generics that were just as good as branded medications and quickly diluted the market dropping the median price to a much more acceptable level where many people could finally afford to pay.
Generic drugs are cheap and can be purchased for a low price when necessary. The prevalence of generics in online stores made it easier for customers to search for a drug and purchase it without any hassles.
Experts of the Canadian Health&Care Mall reported that the amount of active customers has been on the rise for over 4 years and there are no signs of the trend slowing down.
Trend #3. Reducing Manufacturing Costs.
We all know the story of all those huge corporations moving their conveyor belts to the SEA region, Sought America, and Africa. In those regions the production costs and taxes are much more attractive for a manufacturer. In the light of recent events in the global economy, hundreds of corporations announced their plans to move overseas and try to cheapen the production in order to lower prices to an acceptable level. However, the race may be already lost to manufacturers from offshore zones where local pharmaceutical companies strive and go worldwide.
Chinese, Indian, Turkish, and many companies from countries that are less invested in the pharmaceutical area started to enter the NA and European markets. Those companies can produce generic drugs without spending a dime on huge marketing campaigns and life sucking taxes. Generics are cheap, accessible, and can be purchased all over the world meaning that offshore manufacturers can try to profit from huge sales instead of focused marketing and exclusive distribution deals.
Conclusion
Note that all these trends are connected to each other and there is a reason to this. While the industry is moving towards the brighter tomorrow and tries to constantly push the envelope by delivering the next generation treatment method or a revolutionary drug, there are decades that we must spend on catching up. A new drug needs to be tested, approved, and manufactured before we start noticing its impact. A new technology will be so expensive that it won’t go trendy anyways. The only truly important and impactful factor is distribution.
The global pharmaceutical market has changed quite a bit and managed to attract a lot of new investors as well as venture capital that invests aggressively in growing e-Commerce projects. This is the biggest trend and specialists of Canadian health&care mall agree with this notion.
