BioPharma and Health Reform: The Good, the Bad, and the Just Plain Ugly
This article was originally published in RPM Report
While the prospects for major health reform are unclear, there is more clarity to what biopharma has at stake: A lot. In this issue, The RPM Report presents a guide to the upsides and downsides for the biopharma industry of some of the major issues in health reform and some handicapping of the likelihood of each.
You may also be interested in...
Low rates of patient adherence to medical therapy has been a persistent policy hurdle that has significant commercial implications for drug makers. The health reform debate taking place in Washington should include a solution to the problem-but pharma shouldn't take the lead.
Pharmas continue to diversify into lower margin businesses because CEOs and boards are betting on different requirements from a new system of health care delivery. They also figure their jobs will be safer. The choices: Is the likeliest avenue to growth through successful R&D, or through positioning appropriate for future health care delivery and payment systems? Bristol-Myers and Amgen have chosen the former - both because each is too small to diversify and because each believes it has a reasonable track record in innovation. Novartis and most other large pharmas want to take both roads at once--and are either dramatically expanding to enable product bundling or to give themselves enough time to prepare for what the health care system demands. Either way, the wild card of health care reform is making business strategy something of a crap shoot for companies both large and small.
The health care reform debate is entering the critical phase. Here are our predictions for where the legislation will end up.