Reuters: Emerging markets are no panacea

Big Pharma's march into emerging markets could run into some roadblocks. Indeed, some drugmakers have already run up against obstacles, while others may soon find their emerging-markets strategies need some tweaking, Reuters reports.

GlaxoSmithKline ($GSK) faces pricing pressure in Turkey and Russia. Novo Nordisk ($NVO) saw Chinese sales drop by 3% because of cost-cutting. AstraZeneca ($AZN) found itself facing early generic competition in Brazil for its branded drugs Crestor and Seroquel, which cut into emerging-markets growth by three percentage points.

Meanwhile, the whole branded-generics approach may offer only a short term promise. KPMG'S Chris Stirling told Reuters that Chinese drug-pricing moves have cut into Big Pharma's ability to price meds at a premium. And as Deutsche Bank's Tim Race told the news service, the imprimatur of Big Pharma is only highly prized where lesser drug companies can't be trusted. "[T]he Chinese and Brazilians and others are quite quickly coming online with better regulation, creating better trust in local products," Race added.

- see the analysis from Reuters

Suggested Articles

Colorado is making a play for a Japanese CDMO in hopes it will invest about $100 million in an empty AstraZeneca plant in Boulder.

Esperion's Nexletol has had a rough road to approval after safety concerns nearly derailed its quest. But an FDA nod has the drug ready for market.

The FDA approved Lundbeck's Vyepti, formerly known as eptinezumab, as the first IV therapy to prevent migraines in adults.