Succeeding in turbulent times 

This, combined with future patent losses is likely to reinforce the rise of generic drugs. This growth will likely be exacerbated by fewer new products winning regulatory approval. Finally, the sector is increasingly focused on new high growth markets, such as China, Brazil, India, South Korea, Mexico, Turkey and Russia, which together are forecast to grow considerably over the next two years, driven by greater government spending on healthcare.

These factors threaten both current and future revenues prompting pharma to adopt a range of corporate strategies to respond to the changing market dynamics. In some companies, we are likely to see a significant fall in sales which will likely severely negatively impact profit under the existing cost structures. We believe this will put pressure on companies to drive cost savings and operational efficiencies, in particular cost of goods and selling and administration.

KPMG firms can provide industry specific services tailored to the issues your business is facing to help you not only weather the financial storm successfully, but also to use this period to exploit the unique opportunities for future growth.