What are the Challenges and Risks Faced by Pharmaceutical Companies in 2017?
The Pharmaceutical Industry has been a global performer in improving the health care sector of the country. With the rise in pharmaceutical drugs, many lives are being saved throughout the world. But with many investor backed companies and other, the pharma industry also sees some form of risks. There are certain challenges which will be posed by the pharma companies in 2017.
In the United States after Trump’s election when he announced that he is drastically going to reduce the prices of the drug. With the US market drug pricing falling down, the impact on the pharmaceutical industries globally will be huge.
- Slow growth of the US pharma market: Since United States has the largest pharmaceutical market all over the globe, hence its performance is vital for the entire industry. According to QunitilesIMS report, the growth of the US market will decline considerably.
- Venture capital funding: Funding from venture capitalists play a vital role in the pharma sector. Since last year all companies which received investment from venture capital have seen a fall in money fund. Since the last year, a fall of 16 to 20% was seen when compare with few last years. This trend was seen similar throughout the globe.
- Technology related impact: A new form of challenge which the pharmaceutical industry faces is the risk from digital technologies which might affect the pharma industry. These digital form of technologies will hugely impact the drug development as well as commercialization phase. This is considered to be one of the top challenges posed by the pharma companies to date. Some of the latest talked digital technologies include 3D printing and artificial intelligence. These could greatly impact the business and working models of pharma companies, their operations and much more.
- Patient partner: A study done by PwC in the year 2017 states that patients will become the strategic partners of health care companies owing to the stringent regulatory environmental issues. This will led to pharma companies to get engaged with patients to be able to justify the price of the drug.
- Moderation in the global pharmaceutical industry growth: The performance of the global pharmaceutical market will be the biggest issue and challenge in the year 2017. The overall spends on pharmaceutical medicines as compared to the year 2015 and 2016 will see a decline in the year 2017 as seen from a survey by QuintilesIMS. According to their report, the spending will increase grow up to 7% till 2021 but it is down from the 9% growth which was seen in the year 2014 and 2015. The growth in 2014 and 2015 was due to the newly launched medicines for cancer and hepatitis, which will now seen a downward fall till the year 2021. Pricing and low growth volume in newer markets will be an issue in the coming years.
This is to say without a doubt that most pharma companies have done remarkable work over the years, but the year 2017 has bought in a lot of challenges for many companies nationally and globally.