The growing reluctance of americans and governments to pay for expensive drugs is putting long-term pressure on global drug companies' revenues.
Medical market, according to the British financial times research institutions EvaluatePharma6 20 income expectations and cut its global pharmaceutical company will be in the next five years (2017-2022) revenue forecast by 390 billion of the global drug companies.
Source: Financial Times
This is the first time in a decade that EvaluatePharma has cut its earnings estimates. The Evaluate forecasting department leader Antonio Iervolino said: "both drugs already on the market, and the future of new drugs, the us government and people are paying close attention to the price of drugs, we think this kind of attention in the short term will not disappear, now companies are already under pressure."
Indeed, recent high-priced innovative drugs, including amgen's Repatha, sanofi's Praluent and novartis's Entresto, are facing a sluggish sales in the U.S. market. The pharmaceutical giants have also made public promises to cut drug prices, including alberto, allergan and sanofi.
But companies are continuing to raise prices because of rising research and development costs. Pfizer, the us drug company, raised the price of its 90 drugs this month by an average of 20%. Iervolino says the cost of drug development is rising, and the cost of a decade of research and development for a drug has reached nearly 4 billion. In the context of lower drug prices, there will be more pressure on drug companies to innovate.
The recent rise in drug prices has made it one of the most important public issues in American society.
In 2014, Martin Shkreli, the former chief executive of Turing pharma, raised the price of a treatment for AIDS from $13.5 to $750. Last year, chief executive Heather Bresch was under investigation by the us congress for her star drug EpiPen, which had more than quadrupled in seven years. That same year, another pharmaceutical company, Novum Pharma, had a 39 times price increase in 18 months for acne treatment, which ended up selling for nearly $10,000.
Buying patents expire, but almost no generic competition of products, and then a sharp price to maximize business benefits, it has become the United States some pharmaceutical enterprise business model, commercial medical insurance system will pay for these rising costs. However, the price increase of the price of the drug must lead to the increase of the price of commercial insurance and the increase of the rate of self-financing, and the people will feel the pain of rising drug price.
The American public is protesting against the price of "soaring"
In addition to popular resistance, the U.S. government is also concerned about the rise in drug prices. Just last week, federal reserve chairman janet yellen singled out drug prices as part of the reason for U.S. inflation. Industry forecasts, the President of the United States will trump in recent administrative law about prices, he faced with the problem is, how do in people's ability to pay and strike a balance between drug firms r&d power. |
