Trinity Partners, a global life sciences consulting firm, today issued its healthcare predictions for 2016.
1. Drug pricing and biosimilars in light of the upcoming Presidential
election:
Thanks to recent media uproar around companies like
Turing Pharmaceuticals, the company that upped the price of a
life-saving drug for parasitic infection by 5,000 percent, drug pricing
is expected to be a huge topic around the presidential election over the
next year with candidates sharing proposals to help address this issue.
This will also likely bring continued attention to biosimilars, which
are drugs designed to have properties similar to biologics that have
previously been approved. In the next year, close attention will be paid
to their rate of adoption in the US compared to the past uptake of
generics, especially given obstacles such as pricing, strict regulations
and questions around marketing.
2. The revenge of the DTC ad:
As it becomes more and more
important to prove a drug’s worth, pharmaceutical companies are
increasingly pouring money into Direct-to-Consumer ads. For example,
Biogen recently announced 800 new layoffs in order to shift that money
towards MS patient programs. However, this type of investment may bring
on controversy in 2016. Physicians have mixed feelings on DTC ads, and
the American Medical Association recently voted for a ban on all
direct-to-consumer advertising for drugs and medical devices from their
publications.
3. Business Models will continue to change:
Deal making M&A
will stay at a high level in 2016 thanks, in some part, to inversion.
Companies such as Pfizer are moving their addresses to Ireland where the
corporate tax rate is only 12.5%. Acquisitions of biotechs will also be
an interesting space to watch in 2016, especially in terms of
valuations. In 2015, companies that drove up their own price have ended
up in hot water, so the return to more rational pricing for deals is
imminent in 2016.
4. Pharma companies will look to unlock the potential of gene editing:
In
2016, the rise of gene editing will continue. But the question of how
businesses can take advantage will be at the forefront; specifically as
it progresses from being a research/screening tool to one that promises
important applications in drug development, cell therapy and
bioprocessing.
5. Precision Medicine momentum will continue:
The momentum
that began with President Obama’s 2015 Precision Medicine Initiative
will continue into 2016 thanks to a $215 million investment in the
President’s 2016 budget. The investment raises hopes of providing drug
developers with greater insights into the biological, environmental and
behavioral influences on diseases.
About Trinity Partners
Trinity Partners is a trusted life
sciences strategy consulting firm that takes a personalized approach to
working with pharmaceutical, biotech, medical device, and diagnostic
clients worldwide to create tailored, evidence-based solutions that
drive business strategy and impact bottom lines. To learn more about our
Partners, click here: [http://www.trinitypartners.com/index.php/our-team/our-partners/]
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