Despite the World Health Organization removing COVID-19 from its list of emergencies, Dr. Reddy’s Laboratories, a major pharmaceutical company, predicted in its most recent annual report that global spending on the illness, including research to better understand long-term complications and the existence of post-acute sequels of the killer virus, is expected to reach USD 500 billion by 2027.
The report, which was made public on Monday, stated further that the health systems had successfully responded by producing vaccinations with notable efficacy, safety, and speed. However, the sporadic use of treatments and vaccinations makes the coming years unpredictable, particularly given the recurrent appearance of illnesses and viral variations.
“At the same time, research has been ongoing to improve the understanding of the long-term complications and the presence of post-acute sequels of COVID-19. Considering this, COVID-19 will still be a major driver for global medicine spending in the coming years. Global spending on COVID-19 is expected to touch around USD 500 billion in the seven years leading to 2027,” Dr Reddy’s said.
Despite the doubts and volatility brought on by COVID-19, the pharmaceutical industry has been sailing steadily over the past few years. The prognosis for the industry is becoming more apparent with more foreseeable difficulties ahead thanks to information and research advancements, it was said.
Regarding the future of the worldwide pharmaceutical industry, Dr. Reddy’s stated that, excluding COVID-19, the global medicine market is anticipated to increase at a CAGR of 3 to 6 percent through 2027, reaching around USD 1.9 trillion.
Asia-Pacific, Latin America, India, and Africa/Middle East are predicted to experience the biggest volume growth over the next five years, primarily due to population growth. Innovative drugs will drive growth in wealthy nations, offsetting losses from patent expirations and loss of exclusivity.
Oncology, the top therapy area in terms of global spending, is anticipated to grow at higher than previously anticipated rates, with an estimated growth of 13 to 16 percent CAGR, as it faces limited losses of exclusivity in the coming years. Biotechnology is another crucial growth area for medicines and is predicted to account for 35% of global spending over the next five years, according to the drug maker’s annual report.
The possible impact of economic issues on nations’ policies and budgeting will be another significant area of uncertainty. It stated that a more severe than anticipated decline in global economic activity is currently occurring.
Geopolitical tensions and COVID-19 significantly impact the forecast, which also depends on how governments around the world adjust their monetary and fiscal policies, according to Dr. Reddy’s.
