01/17/2020 | Press release | Distributed by Public on 01/17/2020 05:31
The pharmaceuticalindustryis mixed on the factors that willhave the greatest positive impact on the industryin2020, with patent expiry of biologics and vertical integration highlighted as some of the key areas of interest, saysleading data and analytics company, GlobalData.
According tothe company's latest annual outlook report, 'The State of the Biopharmaceutical Industry- 2020', about 20% of survey respondents respectively identified patent expiry of biologics and vertical integration as areas that were expected tosupport industrygrowth. A surprising addition tothe mix was drug pricing and reimbursement, which was viewed as equally important.
Bonnie Bain, PhD, Global Head of Pharma at GlobalData, comments: 'It is possible that the industryexpects that either government mandates willeventually be put inplace tocontrol future price hikes or efforts such as the launch of biosimilarsand vertical integration willeventually lower costs.'
Below are some other prominent factors expected toaffect the USpharmaceuticalindustrythis year:
Bain says: 'Biosimilarswillgain a strong foothold inthe USin2020, building on the success seen with the launch of Amgen's biosimilar monoclonal antibodies (mAbs), Mvasi (Avastin) and Kanjinti (Herceptin) in2019.
'Both of these drugs are now being used inthe clinic and have been added toinsurance formularies. Several additional launches followed in2019 including Pfizer's Avastin biosimilar inDecember 2019. Pfizer also recently announced launch plans for biosimilarsof Rituxan (January 2020) and Herceptin (February 2020).
'Even though the price differential between biosimilarsand their branded counterparts is only around 15%-30%, which is significantly less than the cost savings seen with the average generic drug, we still expect that biosimilarswillstart tocontributecost-savingsinthe USin2020. Uncertainty still exists for reimbursement, automatic substitution, competition from next-generation biologics and litigation but the fact that insurers such as United Healthcare placed Amgen's biosimilar mAbs on the primary tier of its formulary bodes well for future biosimilars.'
US-China trade war
Bain continues: 'Despite concerns about a trade war between the USand China, it is not a surprise that China is still viewed as a huge market opportunity for the pharmaceuticalindustry. China has the largest population inthe world and a growing middle class. The country is also a leader inresearch and development (R&D) innovation for medicine and technologies such as robotics and 5G, which are transforming healthcare.
'Todate, the trade standoff has not had a major impact on the pharmaceuticalindustryand this could be contributing tothe ongoing optimism.'
Bain concludes: 'Vertical integrations continued in2019 but on a lesser scale than inprior years. These deals are touted as opportunities toreduce inconsistencies, consolidate data, align pricing and ultimately lower cost of care.
'It is still too early todetermine the overall impact but one thing is certain - this trend willlikely continue in2020as the industrylooks for new ways tocontrol costs and increase margins.'