A Practical Guide for Multinational Pharma in Emerging Regulated Markets
Selecting the right local partner is one of the most critical decisions multinational pharmaceutical companies face when entering emerging and regulated markets. In markets such as Azerbaijan, this decision directly impacts regulatory timelines, pricing outcomes, market access success and long-term brand performance.
This article outlines the key differences between a traditional distributor and a strategic local partner, and provides practical guidance on how to choose the most appropriate model based on product profile and market objectives.
Understanding the Two Models
Traditional Distributor
A distributor typically focuses on logistical and transactional execution, including product importation, warehousing, invoicing and physical distribution to pharmacies or hospitals.
Typical scope:
Import and customs clearance
Warehousing and inventory management
Order fulfillment and invoicing
Basic regulatory maintenance
This model is often suitable for mature, low-complexity products where pricing, access routes and demand are well established.
Strategic Local Partner
A strategic partner acts as an extension of the manufacturer’s headquarters team, supporting not only operational execution but also strategic decision-making throughout the product lifecycle.
Typical scope:
Market entry strategy and sequencing
Regulatory and pricing pathway coordination
Market access and institutional engagement
Distributor selection and oversight
Commercial planning and launch execution
Compliance alignment and governance
This model is particularly relevant for innovative, specialty, hospital-based or orphan medicines, and for first-time market entry.
Key Criteria for Choosing the Right Model
1. Product Complexity and Innovation Level
Established generics / mature brands: distributor model may be sufficient
Innovative, specialty or orphan products: strategic partner strongly recommended
Complex products require early pricing modelling, stakeholder engagement and tailored access strategies that go beyond distribution.
2. Market Access and Institutional Exposure
In markets with centralized pricing, reimbursement or public procurement systems, access success depends on early and structured engagement with authorities and institutions.
Distributor: limited involvement beyond logistics
Strategic partner: active coordination with health authorities, hospitals and procurement bodies
3. Pricing Risk and Global Reference Impact
Pricing in regulated markets often influences prices elsewhere through international reference pricing.
A strategic partner can:
Conduct pre-submission pricing assessments
Model price corridors and reference impact
Align local pricing with global strategies
This capability is rarely part of a distributor’s core offering.
4. Compliance and Governance Requirements
Multinational companies operate under strict compliance frameworks.
Distributors may follow local compliance standards
Strategic partners typically operate under multinational governance and compliance expectations, reducing reputational and regulatory risk
5. Long-Term Growth and Portfolio Expansion
For companies viewing a market as a long-term investment, the strategic partner model enables:
Scalable launch frameworks
Portfolio expansion readiness
Continuity across multiple products and therapy areas
Hybrid Models: Combining Both Approaches
In many cases, the optimal solution is a hybrid model, where:
a distributor manages physical supply and logistics
a strategic local partner leads market access, pricing strategy, launch planning and partner coordination
This approach provides operational efficiency while preserving strategic control.
Common Pitfalls to Avoid
Selecting a partner based solely on logistics capability
Engaging a distributor too late, after pricing decisions are already constrained
Underestimating compliance and reputational exposure
Failing to define clear roles between distributor and strategic partner
Conclusion
Choosing between a distributor and a strategic local partner is not a binary decision, but a strategic choice driven by product profile, risk tolerance and long-term objectives.
In emerging and highly regulated markets, a strategic local partner can significantly reduce complexity, protect global pricing integrity and support sustainable market entry — while distributors play an important role in ensuring operational execution.
The most successful market entries are those where strategy and execution are deliberately aligned from the outset.
Request a Consultation
Selecting the right local model is most effective when assessed before formal regulatory and pricing submissions.
The NEXA Pharm team supports international pharmaceutical and biotechnology companies with:
evaluation of optimal partner and engagement models
pre-submission pricing and market access assessment
distributor selection and coordination
development of integrated market entry strategies
👉 Contact us to discuss your market entry objectives and receive expert guidance at an early decision-making stage.