In the pharmaceutical world, price hikes have been the gifts that keep on giving because the hefty cumulative effects of rising price tags greatly help year-over-year revenue growth. But a new analysis suggests the trend will slow considerably as drug makers face political pressure over pricing practices.
To wit, the compounded effect of rising prices contributed, on average, 5 percent in revenue growth annually over the last five years. Although total revenue growth slowed over the past year to around 1 percent, without price increases, the sales growth would have declined by a notable 6 percent, according to Leerink analyst Geoffrey Porges, who analyzed data for 17 large drug makers.
Here is another telling statistic about what those price hikes have meant: More than 20 percent of the $320 billion in biopharma revenue notched in the first three quarters of this year can be attributed to the cumulative effect of price increases over the last five years.
Further confirmation of how dependent pharma has become on price increases — rather than new-therapy launches and/or market expansion for existing therapies — as their main engine of “sales growth.” I’ve often observed that this is rather like driving an out-of-gas car by repeatedly engaging the starter motor while in gear. For a while, it will create forward (if somewhat lurching) motion, but ultimately it will burn out the motor.
Xarelto pharmaceutical needs stopped and recalled due to there bleeding problem And J&j needs to settle out of court settlement agreement for the people’s pain and suffering from severe bleeding due to this medication
I wonder when the Feds are gonna address or if they’re gonna address the
PBM issue. How many more states have to be robbed of millions before they see
the light ?
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