X
Pharma Advancement
  • Home
  • Articles
  • Drug Development
    • All
    • Clinical Trials
    • FDA Approvals
    • Research & Development
    Clinical Development

    AI Revolutionizing Drug Discovery and Clinical Development

    Drug-Development

    China’s Super Me-Too Drug Development: A New Pharma Frontier

    Omics Based Clinical Trials

    Asia Pacific Omics-Based Clinical Trials Market Growth

    AstraZeneca Eyes Acquisition To Develop Cell Therapies

    Advanced Instruments All Set To Merge With Nova Biomedical

    Taiho Pharmaceutical Buys Araris Biotech AG For $740 Million

    Oracle Wins the Asia Pacific Biopharma Excellence Awards

    Continuous Manufacturing is Improving Biopharma Production

    AI in Drug Commercialization Market to Grow CAGR 24% by 2032

  • Manufacturing
  • Supply Chain
  • Facilities
  • Insights
  • Events
  • Contact Us
No Result
View All Result
  • Home
  • Articles
  • Drug Development
    • All
    • Clinical Trials
    • FDA Approvals
    • Research & Development
    Clinical Development

    AI Revolutionizing Drug Discovery and Clinical Development

    Drug-Development

    China’s Super Me-Too Drug Development: A New Pharma Frontier

    Omics Based Clinical Trials

    Asia Pacific Omics-Based Clinical Trials Market Growth

    AstraZeneca Eyes Acquisition To Develop Cell Therapies

    Advanced Instruments All Set To Merge With Nova Biomedical

    Taiho Pharmaceutical Buys Araris Biotech AG For $740 Million

    Oracle Wins the Asia Pacific Biopharma Excellence Awards

    Continuous Manufacturing is Improving Biopharma Production

    AI in Drug Commercialization Market to Grow CAGR 24% by 2032

  • Manufacturing
  • Supply Chain
  • Facilities
  • Insights
  • Events
  • Contact Us
No Result
View All Result
Pharma Advancement
No Result
View All Result
Home News

2023 Will See Inflation A Cause of Worry For Global Pharma

Content Team by Content Team
18th January 2023
in News

As the high inflation threat is on the subsiding verge, the second-round effects may not go away quickly. Pharma may have to go through a difficult path with slowly falling inflation in regions apart from the US.

Inflation, which has not been addressed, is a growing concern for the global pharma sector in 2023. Although its effect is going to be less severe with time, there are reasons which suggest that the pressure of inflation is going to be more consistent in certain markets than what was previously assumed. This may be related to pharma firms dealing with higher input costs, which are semi-permanent, and also other challenges that are interlinked for longer than currently predicted. The level of the sales growth hindrance as well as profitability are bound to impact companies from various angles. To an extent, the pharma sector is more resilient to challenges than many other sectors.

That said, the companies should brace themselves for a possibility of  more higher continuous inflationary pressures than what was earlier assumed. This may be related to new supply chain disruptions, prices of raw materials that are not fixed, healthcare spending that is more tight, constraints on pharma expenditure, manufacturing activity stress, and demand that has turned weak.

Notably, the policymakers are looking to respond to the inflation crises by way of bringing new regulation of drug prices framework. In this context, the United States Reduction Act is going to get prominent attention in 2023.

The act has numerous provisions that lower the costs of prescription drugs, which include letting Medicare bargain on the selected cost of medicines. These negotiated prices are not going to be applied until 2026, but the medicines that are selected for Medicare price negotiations will be launched in September this year. The negotiations with regards to these products are expected from October 2023 through August 2024.

In this act, the pharma companies that are operational in the US will have to content with the inflation rebate imposition for utilization of medicare in 2023. Compliance with the highly complex law will ensure that the manufacturers will have to pay rebates to Medicare in cases where drug prices are raised at a faster and higher rate than the rate of inflation.

Similar possibilities are heard across Europe as well, where the priority will be to curb price growth. The European pricing rigidity and reimbursement system means that there happens to be a limited scope for facilitation of significant hike in the prices. Countries like Denmark are all set to embark on price cap negotiations that are multiyear due to the innovative pharma industry, in which the present inflationary landscape is going to have a complex influence on the finalised deal.

An enhanced global environment for increase in the drug prices may take effect friom Q3. Currently, the cost controls that are derived from the economic forces that are inflationary-driven are going to weigh on the strategies of drug pricing. The reduced profit margins could further lead to more constraints in the supply chain of products that are loss-making across certain markets. The pharma sector is expected to be affected dearly by the fallout. Nevertheless, biosimilar and low cost generic manufacturers are likely to be exposed to economic pressures.

The issues that are inflation-driven and are faced by the global pharma industry will be particularly influenced by China. The COVID-zero policies’ dramatic changes and reopening of the borders have also brought opportunities but also short-term risks. Without a shred of doubt, manufacturing sector in China has struggled since the COVID-zer policies have been lifted. Although supply chain issues have been relatively moderate, there have been signs that new orders and production are contracted for Q1. This situation might as well begin to take a u-turn across major manufacturing centres considering infections related to COVID-19 peak in the upcoming months. There is, however, a risk that is looming of economic pain that may reduce the downstream effect on the global pharma supply chain networks.

Because of an adverse impact on the availability of the workforce and also because of delays that are witnessed in the export hubs, the scale of new infections and the questionable ability of Chinese hospitals to deal with the current infection wave may lead to supply chain disruptions. There could be some pharmaceutical manufacturing in China that is diverted to domestic use in the early half of 2023. It is predicted that Q1 and Q2 may have the worst impact on a potential worldwide supply chain bottleneck. That said, the situation that is unfolding could stabilise before mid-year this year. The suggestion states that this could elevate some API prices across the world and thereby make it extremely hard to get certain products in the near term.

The strategies that are put in place by the pharma companies to face this year of uncertainties appear to be around reducing administrative expenses, general expenses and sales. It might happen that some companies will reform their R&D to keep costs in check. Having said that, there are reasons to think that companies which are looking to invest more in this are likely to be in a stronger position and hence could reap the benefits of worldwide economic rebound as well as cost driver stabilization from next year.

Previous Post

Addressing The Antibiotic Shortage Challenge Across Europe

Next Post

U.S. To List Out 10 Prescription Drugs To Negotiate Prices

Related Posts

DHL Supply Chain
News

DHL Supply Chain comes up with New Pharma Hub in Singapore

19th April 2025
Healthcare Packaging
Asia

Amcor Healthcare Packaging Expansion in Asia Pacific

16th April 2025
Drug Development

Advanced Instruments All Set To Merge With Nova Biomedical

22nd March 2025
Drug Development

Taiho Pharmaceutical Buys Araris Biotech AG For $740 Million

21st March 2025
Clinical Trials

Oracle Wins the Asia Pacific Biopharma Excellence Awards

21st March 2025
Clinical Trials

Bio-Rad to Acquire Stilla Technologies by Q3 2025

28th February 2025
Next Post

U.S. To List Out 10 Prescription Drugs To Negotiate Prices

Qucik Links

  • Drug Development
  • Manufacturing
  • News
  • Events & Conferences
  • Newsletter Archive
Pharma Advancement

About Us

Pharma Advancement is a leading Pharma information centric website. On one side Pharmaadvancement.com has established itself as one of the most efficient and comprehensive source of Pharma information online, dedicated to providing decision makers in all the Pharma industry sectors with reliable, accurate and useful insights into happenings in the Pharma sector.

Subscribe Us

System

  • Search
  • Sitemap
  • RSS Feed

Resources

  • Advertise with us
  • Contact Us
  • Download Mediapack
  • Newsletters Archive

© 2017 Copyright © Valuemediaservices 2017 All rights reserved.

No Result
View All Result
  • Home
  • Articles
  • Drug Development
  • Manufacturing
  • Supply Chain
  • Facilities
  • Insights
  • Events
  • Contact Us

© 2017 Copyright © Valuemediaservices 2017 All rights reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In