The Evolving Pharmaceutical Landscape in the US and Its Impact on Drug Commercialization
Over the past several years, innovation in the life sciences industry has increasingly shifted towards specialty medicines that are aimed at smaller and smaller patient populations. This shift has become so pronounced that estimates state half of biopharma revenues now come from products of this nature and that such products will drive over 80% of biopharma growth through 2026. However, this has come with a price tag – higher development costs have led to higher list drug prices, leading payers to demand ever higher rebates and expand their use of drug utilization management techniques. In turn, drug manufacturers have responded by increasing investment in programs that support patient access and so on and so forth. This ever-escalating situation can best be described as a veritable “war of all against all,” where manufacturers continue to raise prices and find ways to overcome payer utilization management, while payers constantly look for new ways to contain those costs. This makes today’s economics unsustainable, with our system becoming one that encourages and relies on high drug list prices, extensive opaque rebates that are generally not passed through to patients, and substantial administrative and cost-sharing barriers that can even apply to the appropriate use of medicines by patients. The result? All stakeholders suffer – patients, physicians, payers, and biopharma companies. At Novartis, we believe there is a better way. Specifically, we see a path forward built around a simple, common-ground solution, wherein both drug prices and patient access are based on clinical value - in other words, "Value-Based Price for Value-Based Access."
Hosted by Professor KiBum Lee