Despite several major challenges in the way over the past couple of years, the pharmaceutical industry continues to thrive. However, the sector is not completely free from challenges this year either. Due to the nature of the industry, cost aspects and stricter regulations remain as constant pharmaceutical industry challenges. Furthermore, pharma companies are also under scrutiny by health insurers, consumers, and the government for greater transparency and accountability. In this blog, industry thought leaders from Infiniti Research give an overview of the current scenario in the pharma industry and also discuss the key pharmaceutical industry challenges that companies can expect this year.
Pharmaceutical industry challenges 2019
The expiry of a drug patent and the consequent drop in the sales of the product which previously held a large market share is known as a patent cliff. These patent cliffs give competitors the opportunity to produce and patent a comparable brand-name drug. In the next couple of years, this is going to be one of the key pharmaceutical industry challenges affecting prescription drug sales worldwide.
As the pharma industry becomes increasingly globalized, complex, and highly regulated, the sector must become more streamlined and cost-efficient at manufacturing and distributing its products. Request a free proposal to know how our solutions can help you streamline your operations and overcome critical pharmaceutical industry challenges.
Foreign counterfeit drugs
The increasing flow of foreign counterfeit drugs into the American market is another key challenge that would affect pharma companies in a big way. As several pharmaceutical manufacturers are moving abroad to attain lower costs, it must be ensured that they meet the U.S. quality standards while adhering to the local regulations overseas. It is also essential to block all illegal trafficking of counterfeit medications. In order to achieve this, stringent regulations and standards must be imposed on all vendors and third parties involved in the manufacturing and transportation of pharma products. For pharma companies operating out of or distributing drugs in the UK, Brexit will make it even more difficult.
US drug prices
The issue of rising drug costs in the US continues to persist. The price freezes in 2018 was a result of constant pressure from patients, politicians, and other regulatory bodies. As a result, a proposal was made to introduce an international pricing index through Medicare with the aim of reducing Medicare spending considerably. This proposal was widely criticized due to concerns and to add on to the pharmaceutical industry challenges several companies hiked their prices even further in early 2019. One of the key pharmaceutical industry challenges in the US right now is to control drug prices and provide more accessible and affordable healthcare to Americans.
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Shift to patient-centric healthcare
The advent of technology has made the patients more informed and they are now likely to play a more active role in any treatment plan prescribed by their doctor. While patient-centric healthcare provides several opportunities, it can also add to the current pharmaceutical industry challenges. The primary challenge will be to determine how to leverage the power of health technology and focus on partnerships directly with the customers rather than with the medical community. In order to survive despite the rising prices, companies in the pharma industry must foster better relationships and build trust with the consumers. Also, the rising consumerism has prompted customers to look at prescriptions from a more value-benefit perspective. As healthcare consumerism rises, pharma companies must find ways to provide real-world research backup claims to justify their products and prices.
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