A survey by Booz & Company of drug company executives, experts and its own staff concluded that a tailored approach to local markets is needed for pharmaceutical firms in emerging markets. In 2016, emerging markets are forecast to account for 30% of the $1,190 billion worldwide pharmaceutical market, up from 20% in 2011. Among emerging markets, Brazil, Russia, India, China, Mexico and Turkey (BRICMT) were rated the most relevant countries. Second-tier markets include Latin America and Southeast Asia. Nearly 50% of respondents expected diabetes drug sales to increase more than 20% the most in emerging nations over the next five years, and 33% expected sales of drugs for oncological diseases to grow over 20%. As the top priority for drug firms doing business in BRICMT, 83% of respondents cited close government collaboration, 77% cited “sales excellence via your own sales force,” 67% cited local manufacturing and around 65% cited local R&D. Asked if drug companies will apply the same “go-to-market models in emerging markets as in mature markets” in the next five to 10 years, for BRICMT, 51% and 38% of respondents expected them to for manufacturing and R&D, respectively. For second-tier markets, 14% and 3% expected to them for manufacturing and R&D, respectively.

Source: Booz & Company