Abstract extract from “Current Trends in Sustainable Medicines Market”
In this context, the authors review current pricing trends for products with the competition, and discuss the qualitative portfolio funding decisionmaking model, according to which companies make choices on funding product developments and pursue licensing opportunities. The model focuses on the products’ early business stage, no matter if small or big molecule and regardless from the product’s origin (in-house developed or in-licensed), and addresses issues specific to prior product launches. The authors discuss how this early stage risk assessment proves itself to be successful in supplying the market with more sustainable products. The authors also argue that many therapeutic indications that were once attractive to invest in, are now dangerously saturated with commoditized molecules (albeit not always a superior therapy is available) and that medications’ current market prices, in many cases, are not relevant to the value they provide to the patients. Such devaluation, detached from the value that products bring, and provoked only by price competition, may have a negative long-term impact on patients, on the industry and on health care systems. The authors identify and discuss three criteria reflecting a sustainable medicine market from the perspective of payers and manufacturers – fair price levels, healthy competition, and modern therapy penetration.
Extract from the Article “Current Trends in Sustainable Medicines Market“
The presented here brief of the qualitative portfolio decision-making model (Table 2) demonstrates and discusses the risk contextually, which is what complex decision-making requires. We will focus on three elements, as they reflect the three criteria for a sustainable medicines market from the perspective of payers and manufacturers: non-market derived price interventions, price referencing and sustainable pricing context, and modern therapies penetration and coverage (positions 6, 9, 15 in table 2). For that purpose, we omitted the discussion on quantitative elements, such as costs and revenues on corporate and local levels, i.e. the R&D cost, manufacturing costs, overheads, marketing, and market access costs vs. predictable volume of sales and revenues adjusted by markets’ affiliates profit and loss (P&L) statement. Every product investment undergoes such evaluation by economic and market parameters. For example, we run a qualitative risk assessment for cystic fibrosis (CF) product-candidate for the Polish market (Table 2). Projects within the portfolio are tracked on a continuum basis during their life-cycle, where subsequent judgment calls are recorded and rated.
Topics covered in “Current Trends in Sustainable Medicines Market“: Article covers and discusses in detail the Neutral health care budgets, the case of the biosimilar infliximab in Norway, inefficiencies in US, the small off-patent molecules and their future; How pharmaceutical companies make sustainable products and portfolio funding decisions: Pharma industry’s adaptability mode: Price pressure and short-term system risk for the industry.
Read the full text of the “Current Trends in Sustainable Medicines Market” at the NCPHP web site. Page 40 – 51. This article is available in English and Bulgarian language.