The pharmaceutical industry is constantly changing. New treatments are emerging, new competitors are gaining market access in new territories, new regulations are in flux, and new customers are being better educated. At the same time, pharmaceutical companies have access to more information than ever before.
But more data is not necessarily better data. The true benefit is knowing what information is important, how the different developments relate to each other and what impact they will have on the business.
That is the reason why the world of market research is gaining significance for pharmaceutical companies. Market research is evolving from static reports and ad hoc surveys to a technology-fueled process that integrates data, analytics, industry knowledge and market intelligence into a continuous process.
The Market Research Industry Is Shifting to Become More of an Intelligence Group
Traditional market research was limited to the analysis of a specific business question at a specific moment in time (e.g., do we need to launch a product, do we need to go to a new country?).
That’s still a good idea, but these days, pharma companies have to keep an eye on the market. There could be a licensing agreement or important results from a clinical trial or a regulatory decision that alters the commercial landscape.
So, contemporary research blends databases, competitive monitoring, primary research, analytics and industry information.
Pharmaceutical Markets Require More Than One Data Point
A market-size figure may provide an indication of the size of a market but it does not tell you why the market is growing, who’s gaining the most from the growth and whether or not the opportunity is commercially viable.
Therapeutic markets, for instance, can experience high growth rates, but may have existing competitors, price pressure, or regulatory requirements. There might be another market that’s smaller, but less competitive and has a high level of unmet need.
This is where the value of industry analysis on a global level comes in. A company can gain a more accurate insight into an opportunity by analyzing the market size, competition, regulations, demand, pricing and industry developments.
Data Quality Is Becoming a Competitive Advantage for Every Player
Pharma firms leverage data on the products, companies, clinical advances, regulations, pricing and markets to make strategic decisions. However, the quality of the information is important.
If a company’s data is out of date, then the results of the competition may be wrong. Portfolio analysis will not be accurate if the product information is incomplete, and market data is not well defined then the comparison will be unreliable.
The problem isn’t necessarily that there’s a shortage of data; it’s that there’s too much data that’s not connected. Businesses require well defined, verified data which is available and can be understood within the appropriate business context. A good research process should take into account the source of the information, the method used in collecting the information, the date of the information, the geographic relevance and the limitations of the information.
Technology Is Changing Market Research
Technology is reshaping the nature of the market research process.
The acquisition, organization and analysis of information using technology is transforming research. AI and sophisticated analytics can analyze vast amounts of data, recognize patterns, and help in market surveillance.
They can be especially helpful for monitoring companies, products, clinical progress and market shifts from one region to another.
Technology can’t replace expertise, however. An algorithm can detect a pattern, but it is up to the experts to decide if the pattern is of commercial value. The best way is to use high tech and human judgment.
The Global and the Local Are Inextricably Intertwined in Global Research
Global research is always local.
Pharmaceutical companies may have operations in several markets, but there may be significant differences between the countries. Market opportunities are affected by healthcare infrastructure, reimbursement systems, pricing policies, regulations, competition, physician behavior and patient needs.
The global research can’t be transferred from one country to another. Local needs global research.
Established global research firms can offer added value with their geographic breadth and local knowledge which is coupled with the correct research methods. This helps companies to differentiate between a theoretical opportunity and a realistic opportunity that can be available.
Competitive Intelligence Is Now Essential to Business Operations
Pharma competition doesn’t just come in the form of Product launches. The pipeline, clinical trials, licensing, acquisitions, partnerships, regulatory activity, and manufacturing investments have the potential to affect the market.
Firms that check the competition once in a while might overlook changes that could impact what they provide or their strategic plans.
Global market intelligence firms assist companies to compile data from various sources and interpret the developments in the competitive landscape. It’s not a matter of keeping track of everything, but a matter of knowing what to look for.
Customer Intelligence Adds Depth to the Customer Experience
Pharmaceutical market consists of patients, physicians, hospitals, payers, distributors and others. There are different priorities for each group.
Physicians might be interested in clinical results, payers in economic value, and patients in accessibility and convenience or treatment experience.
Customer and end user research can be used to help understand these differences. It can be used in conjunction with market information to highlight the disparity in supply and demand.
Global Industry Analysis Helps Reveal Opportunities
Companies can gain a wider perspective of the industry across the world to recognize new opportunities before they are apparent.
For instance, an enhanced investment in a therapeutic area, higher demand in a geography or an expanding manufacturing base for a product category might seem unrelated on their own. These signals, combined, could signal a larger industry trend.
What is important about market intelligence is linking all the developments and understanding their implications for the business.
Selecting the Appropriate Research Partner
Choosing a research partner is not solely based on either the size of the company or the information that is provided. Pharmaceutical companies should consider:
- The skills of the pharmaceutical and life sciences sector.
- Geographic coverage
- Research methodology
- Data quality
- Analytical capabilities
- Industry knowledge
- Customization options
- Transparency of sources and assumptions
A provider that has been knowledgeable in pharmaceutical aspects can better understand regulatory, scientific, commercial and competitive information. The right partner should be able to address a business problem, not just provide a ton of data.
Market Research and Market Intelligence Are Not Equal
Market Research and Market Intelligence are different things.
Typically, market research answers a specific question and is usually in regard to a specific market size or customer preference.
Market intelligence looks at the big picture and integrates market, competitor, customer, product, regulatory and industry data.
Market research involves understanding a particular niche in the market, whereas market intelligence involves understanding the wider market environment and how it’s affecting your business.
They both have a value and can be used in conjunction with each other.
The Implications of These Trends for the Pharma Business
The changing global market research industry is influencing how pharmaceutical companies make decisions.
A market entry project can involve market size, competitive intelligence, regulatory analysis, customer research and company data. Company profiles, Pipeline intelligence, Licensing activity, Market trends may be utilized by the business development team. A sourcing team can link up manufacturer data to demand trends and supply chain intelligence.
The value is in collecting in pertinent information.
The Value of Connected Intelligence Is Evident in the Field of Life Sciences
Intellipedia is valuable in the life sciences arena.
More than ever before, connected intelligence is becoming crucial, and that’s where specialized life sciences intelligence providers come in.
Lifescience Intellipedia specializes in market research, proprietary databases, clinical trial intelligence, regulatory services and data analytics for the life sciences ecosystem. It has applications in the pharmaceutical industry, API companies, biotechnology, specialty chemical, sourcing, regulatory, business development and strategy.
Among these audiences, information will be most useful to them if it helps them make a commercial or strategic choice.
The Future of Pharma Market Research
The trajectory of the global market research industry is very evident – research is becoming more connected, continuous, technological, and analytical.
Data processing will continue to be enhanced with the help of AI, databases will be increasingly sophisticated, and analytics will reveal patterns in large data. More human interpretation, however, will be needed.
Numbers alone are not enough to understand pharmaceutical markets. Businesses require experts who can evaluate the quality of information, grasp the context of the business, and convert the information results into actionable decisions.
The future does not have to be one of increased data volume. It’s just that it’s about greater intelligence.
Conclusion
Pharmaceutical firms are seeing fundamental shifts in the global market research industry, as they gain a new way of understanding their market.
Global industry information, sophisticated analytics, competitive intelligence, customer understanding, databases and expert interpretation can help deliver a comprehensive perspective of market opportunities and threats.
It’s not always the companies that gather the most data that will reap the most benefits. It is they that will be able to filter out important signals from the noise, decipher the meaning of these signals and make business decisions based on them.
Ultimately, modern market research should provide less information, and more clarity.
FAQs
1. What is market research industry?
The global market research industry comprises of companies that conduct research, data vendors, technology tools and analytics solutions to gain insights into markets, customers, competitors and industry developments.
2. What is global industry analysis and why should pharma care?
Pharmaceutical industry analysis includes looking at the growth, competition, regional opportunities, industry evolution and risks in the global market before making a strategic decision.
3. What do global research companies provide?
Global research companies can offer market sizing and forecasting, customer research, competitive intelligence, segmentation, and industry analysis by country/region.
4. Who are global market intelligence companies?
Global market intelligence service firms assist companies in gathering, arranging, analyzing and understanding market data, competitor data, consumer data and industry information.
5. Are there times when more market information isn’t better?
No. Data is only useful if it’s reliable, relevant, timely and properly interpreted. In the Pharma industry, it’s more valuable to have actionable information rather than just more data.