Pricing pressures lower drug sales forecasts, new report finds

Wed, 2017 / 06 / 28
Pharmaceutical companies are facing a "squeeze on pricing" that will likely dampen future sales, according to a new assessment by the market intelligence firm EvaluatePharma.

In the 10th installment of its World Preview report, EvaluatePharma anticipated global drug sales will reach $1.06 trillion in 2022, down from last year's $1.12 trillion and the first time in the report's history that researchers lowered the long-term projection.

Pricing pressures, such as increased negotiating power from pharmacy benefit managers and uncertainties surrounding the Trump administration's stance on drug costs, were a core reason for the decline. Additionally, drugs falling off patent could lead to the loss of nearly $200 billion of sales, while R&D expenses continuously rise and reach an estimated $5.1 billion per new molecular entity by 2022.

On the bright side, overall pharma and biotech continue to perform well, especially in the areas of orphan drugs and immuno-oncology, two areas of SKC’s specific expertise.

To read the full report please go to http://www.biopharmadive.com/news/evaluatepharma-pricing-report-world-preview/445516/

 
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