High income disparities
Despite declining global poverty rates, income disparities in some of the world’s most populous countries, including China, India, the US and Indonesia are still high. Wealth remains concentrated among a small percentage of the world’s population.
Key economic challenges
The global pharmaceutical market is expected to grow at an annual rate of 3-6% in the coming years, with specialty care costs reaching 50% by 2023 in most developed markets.2
- Pressures across the entire healthcare value chain on funding, budget caps and affordability have resulted in reforms in many countries, with politicians, patients and payers demanding more value from innovation, affordable medicines and new access models.
- The advancement of biosimilars (a biological product highly similar to an approved biologic with no clinical differences), especially in the US and Europe, is changing the way medicine is practiced. Competition in biosimilars is expected to increase three-fold by 2023.2
- Technological advances have opened the door to non-traditional players in healthcare, fueling competition and growth of new collaborations.
1 Source: UN population division, World Population Prospects 2019.
2 Source: “The Global Use of Medicine in 2019 and Outlook to 2023”, IQVIA Institute Report.