How a Life Science Company Can Leverage Growing Economies
Emerging markets represent a significant growth opportunity for life science companies. These regions account for 85 percent of the world’s population and are experiencing rapid expansion in healthcare investment, research, and access to new treatments. As healthcare systems evolve, demand is rising for drug discovery that can deliver life changing medicines, alongside therapeutics ranging from small molecules to advanced gene therapies.
The journey to scale in these markets is rarely straightforward. Companies must navigate complex regulatory requirements, build reliable distribution channels, strengthen brand recognition, and manage operational risks; all while striving for better outcomes for patients and healthcare providers. Success requires foresight, resilience, and the ability to respond quickly to shifting conditions.
Researchers and teams working in these fields face added pressure around quality standards, compliance expectations, and the creation of sustainable growth models that can function in diverse healthcare environments. Addressing these challenges calls for a clear strategic concept, strong collaboration across the industry, and a willingness to adapt approaches to the realities of emerging markets.
1. Understanding the Opportunity in Emerging Markets
Population growth and urbanisation are creating new healthcare needs across emerging economies. Rising economic development and an expanding middle class are driving demand for drug discovery and a wide array of therapeutics. Countries such as Brazil, Russia, India, China, and South Africa are experiencing rapid advances in pharmaceutical and biotech fields, with local markets expanding at faster rates than those in developed economies.
China’s pharmaceutical market is forecast to grow by nearly eight percent annually, while India is on track to become one of the top ten global life sciences markets. This momentum is shaped not only by treatment needs but also by prevention, as non-communicable diseases such as cancer become a priority. These trends point to future demand that will reshape the balance of global healthcare investment and innovation.
Companies that establish a clear concept for entering these regions can gain a competitive advantage, build recognition among clients, and form lasting partnerships. Organisations that explore opportunities early and strive to position themselves at the forefront of healthcare innovation are better placed to achieve strong results, adapt to shifting conditions, and share growth stories that resonate across the industry.
2. The Challenges of Scaling in Emerging Markets
Regulatory Hurdles
Each market has its own regulatory framework, approval timelines, and requirements. Brazil’s ANVISA often requires additional local clinical data, while China’s NMPA has introduced accelerated approval pathways for innovative medicines. Companies should prepare by mapping approval timelines in advance, setting aside resources for local trial support, and monitoring evolving regulations.
Distribution Complexity
Building a reliable distribution network is one of the most difficult aspects of scaling. In India, distribution often relies on complex regional networks with multiple intermediaries, while African markets can face last-mile delivery challenges due to limited infrastructure. Practical steps include conducting distributor audits, implementing service-level agreements, and creating regional warehousing strategies. Latin America illustrates another model, where hub-and-spoke distribution reduces risks associated with fragmented national networks.
Market Intelligence Gaps
Accurate and up-to-date market data can be scarce. Pricing and reimbursement information in Southeast Asia is often opaque, while competitor data may be fragmented across multiple sources. Companies can address this by commissioning targeted market studies, subscribing to regional intelligence services, and partnering with local research organisations. Eastern European markets, in contrast, tend to have more structured data collection but still require careful interpretation to account for state-driven healthcare models.
Brand Awareness
Life science companies entering new geographies need to establish trust with healthcare providers, regulators, and patients. In the Middle East, government endorsement and local partnerships are especially important in establishing credibility. African markets, meanwhile, often place higher value on long-term community engagement and support programmes as a sign of commitment.
Financial and Operational Risks
Economic volatility, political instability, and currency fluctuations can disrupt operations. Sudden currency devaluations in Latin America have affected pricing strategies for pharmaceutical companies. Companies can mitigate these risks by using forward contracts, structuring pricing models in hard currency, and diversifying supplier bases. In Eastern Europe, local government incentives may offset operational risks but require negotiation and compliance with strict reporting standards.
3. Strategic Framework for Market Entry
Market Assessment
Market selection should be based on more than population size and economic indicators. Regulatory alignment, reimbursement structures, intellectual property protection, and healthcare system capacity all influence potential. Nigeria, for instance, has strong population growth but a fragmented healthcare system that creates unique barriers when compared to markets like Malaysia or Singapore. Comparative analysis across markets allows companies to prioritise entry where both regulatory alignment and healthcare infrastructure provide stronger conditions for success.
Regulatory Navigation
Companies benefit from developing tailored regulatory strategies. Many emerging markets now offer expedited approval pathways, but criteria differ significantly. Mexico recognises approvals from the US FDA and EMA, reducing timelines, while India continues to require additional bridging studies. Companies should allocate resources to in-country regulatory staff or external advisors to stay current with changes.
Local Manufacturing and Supply Chain
Governments increasingly expect local manufacturing or technology transfer. In India, regulations encourage domestic production of biologics and vaccines. Establishing partnerships with regional producers or contract organisations can help reduce costs, improve reliability, and build goodwill with authorities. Smaller markets in Sub-Saharan Africa may not demand local production but place strong emphasis on supply chain reliability and cold-chain management.
Collaborative Models
Joint ventures, public-private partnerships, and alliances with local firms can accelerate entry. GlaxoSmithKline’s collaboration with Biological E in India combined global expertise with local market knowledge to deliver affordable vaccines. In Eastern Europe, joint ventures are often structured around co-marketing agreements that allow faster distribution while meeting local ownership requirements.
4. Building Sustainable Partnerships
Distributors, research institutes, and government bodies are critical partners in scaling operations. Selecting reliable distributors requires due diligence, clear agreements, and strong training to ensure products are represented consistently. In Southeast Asia, where distributor networks are often family-owned businesses, careful relationship-building and ongoing training are essential. In Latin America, distributor selection often depends on alignment with existing retail pharmacy networks. Research collaborations with universities and government-backed research institutes also provide credibility and access to networks that would otherwise take years to develop.
5. Strengthening Market Presence
Once market entry has been achieved, companies need to invest in building a strong presence. Localising brand messaging ensures that communications resonate with regional stakeholders. Adapting content to reflect cultural preferences and medical practices significantly improves acceptance. Digital marketing and search optimisation improve visibility, while thought leadership through whitepapers and scientific insights builds trust. Mobile-first digital health solutions are gaining ground in Africa and South Asia, extending healthcare access in underserved regions. Eastern European markets, by contrast, rely more heavily on hospital-based procurement systems, which requires stronger institutional engagement.
6. Managing Risk and Ensuring Compliance
Risk management is essential when operating in dynamic environments. Companies need frameworks that cover political, regulatory, and financial risks. Contingency plans for supply chain disruptions and compliance with diverse regulatory standards are critical. Intellectual property protection is another important factor, as enforcement varies widely across jurisdictions. Compulsory licensing rules in India and South Africa can affect market exclusivity, while Central and Eastern Europe enforce strict data privacy laws that must be incorporated into compliance programmes. Companies can strengthen resilience by adopting global compliance frameworks while tailoring operational policies to local regulations.
7. Talent Development and Local Capacity Building
A sustainable market presence requires investment in local talent. Training programmes, university partnerships, and knowledge transfer initiatives help build skilled workforces. Collaborations with universities in Malaysia have helped international firms establish local research capacity. In India, companies are increasingly investing in biotech incubators to develop specialist skills. International talent exchange can complement local expertise while long-term collaborations with research institutions create innovation ecosystems that support growth beyond immediate commercial goals.
8. Role of Strategic Partners like Pivotal Scientific
Consultancies that understand the global life sciences landscape play a critical role in bridging strategy and execution. Pivotal Scientific supports companies in multiple areas:
- Commercial due diligence and market intelligence
- Business planning and strategic consulting
- Distributor introductions and training
- Marketing and branding support
- PSL Alliance for connections to specialist partners
Conclusion
Emerging markets provide life science companies with high-growth opportunities supported by demographic and economic trends. Success depends on detailed market assessments, strong partnerships, regulatory expertise, risk management, and investment in local capacity. Pivotal Scientific helps companies navigate these complexities with services designed to support sustainable and strategic expansion.
Get in touch with Pivotal Scientific today to discuss how we can support your expansion.
