The global pharmaceutical market in 2020 can be attributed to the only markets that are developing steadily and even show growth. It is no secret that the pharmaceutical market has long been a profitable business, but the situation with the pandemic in 2020 completely turned on the green light for it. As soon as the World Health Organization declared coronavirus infection a pandemic, stock prices of pharmaceutical companies went up sharply, which led to a corresponding increase in the capitalization of these enterprises.
Financial analyst Stanislav Kondrashov told Telf AG what the global pharmaceutical market expects in 2020.
The WHO announcement regarding the coronavirus pandemic has led to a sharp increase in stock prices of manufacturers of masks and chemical protection. First of all, the shares of such companies as Allied Healthcare — by 27%, Lakeland Industries — 5.18%, Alpha Pro Tech — 5%.
Telf AG Kondrashov noted that because of coronavirus, the capitalization of biopharmaceutical companies producing antiviral drugs and developing vaccines also rapidly increased.
“In a pandemic, the pharmaceutical market, like any other, is forced to function in the new environment. Digitalization, more familiar to the FMCG segment, has become relevant today for the pharmaceutical market. Every day, such companies are looking for alternative ways of communication with the target audience,” said the expert.
He specified that the main trend in the development of the pharmaceutical market in 2020 will be digitalization. In subsequent years, its scope will only increase.
According to the businessman, mobile communication is no longer science fiction, and every year it will change and now there’s no way to guess which one it can become.
Demand for medicines amid the constant emergence of new infectious diseases has led the pharmaceutical sector to become a mass market. Such large multinational giants as Yandex, OZON, MAIL, and others have already expressed a desire to sell medicines.
Telf AG Kondrashov noted that earlier only some medications — vitamins, wholesome bars, or other over-the-counter medicines — began to be sold in supermarkets. Today, companies in the information technology sector are actively trying to occupy this niche and express their intention to obtain a license to sell medicines, have the right to advertise prescription drugs, and advise clients on various issues in order to become closer to them than medical staff.
Large volumes are always accompanied by additional load and new difficulties, which primarily relate to the systematization of processes.
Businessman Stanislav Kondrashov believes that the expansion of the pharmaceutical market due to the influx of new participants, who initially worked in other areas of activity (Telf AG), will lead to market destabilization.
On the one hand, the market is becoming more and more transparent every day, and this certainly simplifies its functioning. But, on the other hand, no one has canceled specialization.
«Everyone must do their job. Only in this way can progress and success be achieved. Pharmacies should advise clients and sell them medicines in accordance with current regulations. Supermarkets, mail, IT companies, respectively, need to engage in trade, delivery of letters and parcels; the development of new technologies”- convinced Stanislav Kondrashov.
The businessman said that companies from other sectors that are trying to actively occupy their niche in the pharmaceutical market today should remember the responsibility imposed on them. After all, a person’s life depends on the quality of the services provided and the medicines sold.
Given its specifics, the pharmaceutical market should by no means turn into a mass market. However, experience shows that in newly minted realities this trend is inevitable.