Geopolitical Tensions, Inflation, Drug Pricing Struggles: Report

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Pharma 2024: Geopolitical Tensions, Inflation, Drug Pricing Struggles: Report

Persistent inflation, geopolitical conflicts, and the continuing push to cut back drug costs will pose as the first hurdles for the pharmaceutical sector in 2024. ()

The report by GlobalData, a knowledge and analytics firm, based mostly on a survey of 115 healthcare {industry} professionals, confirmed that drug pricing and reimbursement constraints elicited the strongest responses from survey respondents. The vast majority of these respondents seen the pattern as having a detrimental impression in 2024.

Geopolitical Conflicts and Inflation Heighten Unfavorable Sentiment

This was intently adopted by geopolitical conflicts and inflation — each eliciting extra detrimental sentiment as nicely.“Regardless that inflationary pressures are retreating, the opposite shocks might come, particularly with international tensions mounting. Geopolitical tensions and conflicts deliver uncertainty to the financial outlook as deteriorating relationships are sometimes accompanied by quite a few repercussions starting from lowered cooperation, IPO market disruptions, to financial sanctions,” stated Urte Jakimaviciute, Senior Director of Market Analysis at GlobalData, in a press release.

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It was scored because the primary obstacle to {industry} development when healthcare professionals had been requested to fee probably the most detrimental rising regulatory and macroeconomic traits for the 2019, 2020, 2021 and 2022 {industry} outlook. It was solely pushed right down to the second place final yr, when inflation took over the main place as probably the most detrimental {industry} pattern for 2023.

“Whereas pricing management can result in a extra inexpensive healthcare for the general public, it limits income development for the pharmaceutical sector. Value controls — which apply to medicines in most main markets — imply that drug costs should not usually allowed to rise on the identical fee as normal inflation,” Jakimaviciute stated.

“However, this may increasingly restrict the income development for pharma, with manufacturing prices on the rise: for instance, because of suppliers rising the prices and staff anticipating pay rises, drug manufacturing prices might enhance nicely above inflation charges.

“Whereas inflation peaked in 2022 in a lot of the markets, and inflationary pressures are slowly receding, it’s above the two % goal customers and enterprise are nonetheless feeling the strain of elevated costs. Sharp financial coverage tightening seen in a lot of the markets also can result in recession or hamper international development,” Jakimaviciute stated.

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Reference:

  1. Geopolitical conflicts, inflation, and drug pricing pressures shall be prime challenges for pharma {industry} development in 2024 – (https://www.globaldata.com/media/pharma/geopolitical-conflicts-inflation-drug-pricing-pressures-will-top-challenges-pharma-industry-growth-2024-finds-globaldata/)

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