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Frost & Sullivan: BRIC is Not Delivering Promises of High Growth in Healthcare Markets
Date:5/21/2013

at of physicians in mature markets.  Another weak point is the lack of partnerships with local governments, NGOs and other trade organizations – this is really a very critical aspect and shows governments the level of commitment organizations are willing to make."

Overall, the market is witnessing a slowing of growth.  To further debilitate matters, the industry is seeing a changing attitude from regional BRIC governments, which is even more perplexing.  In India, price cuts were introduced to make drugs or devices like stents more accessible to patients.  China plans to introduce a fast-track approval process for new drugs that could exclude firms that have not conducted clinical trials in the country.  Meanwhile, Russia is proposing to limit the state purchasing of foreign medicines, and Brazil has introduced higher import tariffs to encourage local industry.  These trends impart a mark of further protectionism and control by the state, and more is expected to come.

"The success in the region will be less about emerging markets being cheap and more about how companies can capture the growth in these markets moving forward," said Das.  "There is a real chance for the industry to innovate in emerging markets by using disruptive technology and establishing a new commercial model that has the potential to become a relevant option for use in the developed world as well."

Das concluded: "It is very clear we need to rethink emerging market strategies and start changing the dialogue.  We must move away from looking at it as a volume business in terms of large number of patients and demographics to more about where we can deliver the value to create the access that is required to meet demand."

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