For a decade, each new sales forecast from analyst group Evaluate for drugs was higher than the previous one, because the latest innovations and general price increases pushed such forecasts. However, this year the situation has changed.
For the first time since the publication of its reports World Preview, the life science commercial intelligence firm, has lowered its forecast for industrywide drug sales. This was mainly influenced by the increased attention to pricing.
Evaluate reduced its 2022 projection by $ 60 billion from $ 1.12 trillion to $ 1.06 trillion, although some standout performances from drugs, such as the cancer drugs Keytruda and Opdivo, will continue to increase drug sales.
Drug pricing has taken public and political attention again after almost two years since the former CEO of Turing Pharma Martin Shkrely raised the price of the old toxoplasmosis by 5000% in 2015. Since then, numerous disputes have not ceased on this issue, and the leading drugmakers have made a commitment to pricing by themselves.
The discussion also spread to industry middlemen, and now the legislative authorities of Congress and the states are considering several proposals aimed at reducing drug costs. According to reports this week, the Trump Administration is working on its own executive order to direct executive agencies to implement trade policies that protect intellectual property rights over pharmaceutical products abroad.
While his agency isn’t in charge of drug prices, President Trump’s FDA commissioner, Scott Gottlieb, has moved to address the issue as well. Last month Gottlieb said that the FDA would publish and regularly update the list of drugs that are off patent and have no competition, work to reduce the time of the generic report and seek to reduce the regulatory process in the industry, which will allow companies to extend patent monopolies.