Report focuses on Obamacare, BRIC markets, and "new medical culture"
NEW YORK, Feb. 5, 2014 /PRNewswire/ — PHARMACEUTICAL EXECUTIVE, the biopharmaceutical industry's premier publication,presents the 2014 INDUSTRY OUTLOOK, its annual review of the business and policy environment for Big Pharma.
Will 2014 be a year of compromise and collaboration — or will it be one of retreat into the trenches?
How can pharma face up the latest challenges — from understanding the "New Medical Culture" of Obamacare to negotiating the changing landscape of the BRIC markets?
According to the PHARMACEUTICAL EXECUTIVE 2014 INDUSTRY OUTLOOK, companies must accomplish three things. They must increase revenues from drug sales, demonstrate a reduction in cost to the health system, and improve health outcomes for patients — a tall order.
Says PHARM EXEC Editor, William Looney:
"It will require open collaboration, a heavy dose of new technology and some serious creative thinking. And more important than ever are strategic focus and operational discipline."
"In short, it's time to be decisive — muddling through is so yesterday."
In the US, continuing uncertainties as to what provisions of the Affordable Care Act (ACA) will or won't be functioning in 2014 will test companies in unexpected ways.
PHARM EXEC points out that this year is likely to be the beginning of an entirely new "medical culture" — one that the U.S. Rx industry will have to quickly learn how to manage.
As for Europe, the EU Parliament's upcoming elections could result in a more unpredictable approach to policy-making. Austerity economics will continue to shape thinking around sustainable health systems. And the widening demands for accountability, transparency, and good governance will tighten monitoring on the drug industry.
But the Industry Outlook also highlights Europe's new opportunities for research funding. For example, 2014 will see the EU's $100 billion program to support innovation comes into effect.
In the BRIC markets, the tide continues to turn. BRIC no longer needs to prove its value to western pharma — now western pharma must prove its value to BRIC.
PHARM EXEC's Industry Outlook, however, points to some potential short-terms wins. Brazil's pressure to keep healthcare costs low is still an attractive option for generics and biosimilars. In India, up to 90% of retail pharma is still unorganized, leaving a huge opportunity for new players. And China's race to modernization still has potential "if you play the game right".
Adds WILLIAM LOONEY, "There are other positives from this year's Industry Outlook. Global spending on medicines will cross the $1 trillion mark for the first time in 2014, and drug spending in the US is expected to grow – for the first time in two years – due largely to a decrease in exposure to patent expiry."
For more information contact: William Looney: (212) 951-6735