DDP 2010: Maximize Opportunities for Tomorrow - Tools for Evaluating and Negotiating in Emerging Markets

Debra Bingham, Partner, Valeo Partners
Sylvia Rossi-Montero, Chief Executive Officer, MedPhysion
John Fraher, Chief Commercial Officer, Eurand Pharmaceutical Technologies

In terms of drug delivery market growth, the dynamics have evolved. The world’s population growth of those who are taking medication is on a steady growth path. What’s growing it? The middle income in the emerging market is important. Individuals are quickly moving towards middle income. In India, the population is in the urban areas. In France, individuals aren’t worrying about paying for medication. In India, the purchases of Pharma are from the individuals.

Market challenges:
-Complexity: market diversity and pricing issues
-Government surprises: regulatory uncertainty, protectionist laws
-Business transaction surprises: intellectual property protection, confidentially, contract

Companies are going into emerging markets. It’s important to put a strategy in place when a company is looking into joining a developing market. Look at your market research: what is the patient population, knowledge and habits? What are the pricing points?

In terms of execution, use third party market research. Also, find someone in the country that can help you make the relationships to know the country.

What about the right market data for a company looking to enter an emerging market?
A company should look at:

-Is the country’s population large and growing? Is the population willing to pay out of pocket for their medications?
-What is the purpose of market research?

To understand and collect data you should look at:
-Who are your customers: what are the prescribing habits in these markets?
-Understand your competitors.
-Understand your market. In Brazil and China, nurses roles are minimal.

Primary Market Research: Validate the secondary market research. If controlled or sustained release, there are two types of research. Qualitative: understand perceptions and barriers of the native population. Quantitative: Data driven, what is the relationship among the variables: pricing, position, promotion, and distribution channels.

Are there difference in the primary market b/w developed countries between developed and emerging countries?

For combination product, it depends on the product. Local and regulatory guidelines differ greatly in the local country, so it depends on the local rules in emerging market.

Which emerging market is key to 2010?
The BRICK Markets. They see a fast emergence in the middle income, which is a premium driver for payment of premium markets. There’s also an increase in regulation in the countries, in addition infrastructure. Russia, Turkey and Korea were sidetracked with the economic crisis.

The country ignored in the BRICK is South Africa. Economy is growing fast, but in terms of ease, the local companies in south Africa understand the regulations. Turkey, with it’s 80m population, it’s preparing to join the EU. The increase in middle income is very large.

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