Market Sizing

Question 1

Number of people in the world

Answer 1

7.5B

Question 2

Break down of developed/less developed/undeveloped

Answer 2

20/40/40

Question 3

How to do a market sizing for a new drug

Answer 3

total population –> number with illness –> number diagnosed –> market share of drug–> (dosage per time frame) x price per dosage

Question 4

Risks for Pharma industry

Answer 4

Financials
Revenue - don’t get the buy in from doctors
Bad side effects
Price pressures from generic drug manufacturers and insurance companies
Certain products face high seasonality

Market
Unfavourable healthcare regulations and CMS rates
Major competitive threat of generic manufacturers

Question 5

Key cost factors for Pharma industry

Answer 5

R&D 
Manufacturing
Marketing 
Wages
Liability insurance and legal fees

Question 6

Revenue streams for Pharma industry

Answer 6

Mostly from insurance companies
Insurance companies + patients
Subsidies from federal government for R&D

Question 7

COVID impacts on Pharma industry

Answer 7

Supply chain disruption
Push toward digitisation
Disruption of clinical trials + new methods

Question 8

Characteristics of Pharma industry

Answer 8

Contract or in house salesforces
Major R&D costs
Generic vs name brands - Generic drug producers produce ‘copy-cat’ drugs (with the same medical result) at a lower development cost when the originator drug’s patent expires.

Question 9

Customer segments for pharma industry

Answer 9

Medical patients
Prescribing doctors
Government insurance programs
Health insurance companies