If there was a year where the world is dependent on its survival on one industry, this is it. 2020 has brought us COVID-19. Healthcare companies are scrambling to find a treatment or cure, and we have no doubt that this will happen before the end of the year. And that is because the industry has been in a phase of transformation for some time.
In developed markets, the growing cost of medical care, rising insurance cost, and HMO’s are forcing companies into mergers, more cost-effective product development, and rapid commercialization of new molecules. It also results in taking products more rapidly from a prescription category to OTC. Additionally, as a large number of products continue to go off patent, it creates opportunities for generic companies to source products globally or international companies to participate in developed markets.
Pharmaceutical companies continue to grow in developing markets, still meeting basic needs of growing populations. However, some of these countries have developed manufacturing in bulk drugs (e.g. China) and generics/formulations (e.g. India) giving them the confidence to export to developed markets. They are now WTO compliant, they have understood the FDA approval process, and have determined ways of distributing products not only in under-developed markets but also developed markets.
Having worked for leading OTC and RX companies, Cedar has a strong understanding of business issues that these companies need to address in a market that offers both challenges and opportunities. Cedar has also worked with a large number of diagnostic and medical device companies globally. Assessing global market opportunities, creating new supply chains, to developing group strategy using the Balanced Scorecard framework are some examples of how we have added value to our healthcare industry clients.
This industry will save the world in 2020.