As per the results of a study done by GlobalData, the top issues when it comes to the pharmaceutical industry in 2024 are going to be inflation, geopolitical conflict, as well as drug pricing pressures. Data outcomes went on to reveal that most respondents from the Pharma gamut considered that drug pricing as well as reimbursement constraints were going to have an adverse effect in 2024.
Inflation as well as geopolitical pressure
The second biggest adverse impact was thought to be arising due to geopolitical conflicts and inflation. As per the Senior Director of Market Research from GlobalData, Urte Jakimaviciute, geopolitical tensions as well as conflicts go on to bring a kind of uncertainty to the economic outlook as certain weakened relationships get often tagged by numerous repercussions that range from decreased cooperation, disruptions of the IPO market, to even economic sanctions.
Drug pricing happened to be considered the most negative upcoming regulatory as well as macroeconomic trend, resulting in dipping growth for the industry, based on the industry outlooks from 2019 to 2022 from GlobalData.
It is well to be noted that, as per Jakimaviciute, price controls, which go on to apply to medicines in most of the major markets, go on to mean that drug prices don’t happen to be typically allowed to increase at the same rate as general inflation. Nonetheless, this may very well go on to limit the revenue growth when it comes to pharma, with production costs increasing. For instance, because suppliers are increasing costs and employees are expecting hikes in pay, drug production costs may go on to rise well above the inflation rates.
Further inferences from the report
But GlobalData summarized that, on the basis of the report, influences that include environmental, social, and corporate governance- ESG factors as well as patent expiration of biologics are forecasted to positively affect the pharmaceutical sector in the years to come, with the latter enabling to streamline operations and at the same time generate growth.
The pharmaceutical sector will require to innovate as well as increase resilience so as to accelerate market expansion, the company went on to highlight. The report went on to recommend that, so as to get a competitive edge in the market, emphasizing modernizing R&D models or even implementing emerging technologies could go on to support this endeavor.
Finally, as per the research, two other upcoming industry trends within the biopharmaceutical sector are immuno-oncology drug development as well as real-world evidence- RWE.