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As Big Pharma looks back to the start of 2024, price and access stand out as key factors determining the future of the industry.
From the planned negotiations on the Inflation Control Act Manufacturing woes This has caused significant supply disruptions, and the market conditions for blockbuster flagship products and newly launched drugs are equally challenging.
Here’s what leaders at some of the largest pharmaceutical companies said about the industry environment given pricing and access pressures as they reported first-quarter earnings over the past few weeks.
“Our products that are going through the (IRA) process are not going to be a growth driver for us going forward. These are our products that are nearing the end of their lifespan. , not really a key person for us.”
jennifer tobert
J&J Vice President and Chairman of Innovative Medicine Worldwide
Jennifer Taubert, head of the health care giant’s pharmaceutical division, didn’t mince words about her feelings about IRAs, saying the new law allowing Medicare to negotiate drug prices “doesn’t reinforce a tremendous problem.” Ta. The investments we make in research and development. ”
That said, Taubert reassured investors that the IRA would not be a major disadvantage to J&J. The company sells three types of pharmaceuticals: list of 10 Charelto, Imbruvica and Stelara, which will be included in the first year of the law’s bargaining program, are not products on which J&J will depend for future growth, she said. He noted that while the company is still going through an up-and-down negotiation process with the government, the outcome did not set the pharmaceutical sector back from its goal of $57 billion in sales by 2025.
J&J and other major pharmaceutical companies lost the court battle Although opposed to the IRA, both companies have vowed to continue the fight.
“As we lower the $3,500 cap to the $2,000 cap, we generally expect to see lower costs at the pharmacy counter and better ability for more patients to fulfill their medications.”
Dr. Vasant Narasimhan
CEO of Novartis
Dr. Basant Narasimhan, CEO of Novartis, Redesigning the IRA Medicare Part D prescription plans lower out-of-pocket maximums for patients. He said it’s still in the “early stages” and the company will continue to monitor how the law develops.
Industry lobbying group PhRMA said the redesign “took significant steps to lower out-of-pocket costs” by introducing a floor cap, but “did not go far enough”. The group has been adamantly opposed to the negotiating side of the IRA.
“Biopharmaceutical research companies need to rethink where and how they invest in medical research and development, and governments are making significant advances in “We are selectively selecting winners and losers,” PhRMA said in the paper. statement.
“[The impact of the IRA redesign]will really spread across our business, most concentrated in immunology and oncology. And we estimate that the impact on total revenue is equivalent to several points of growth. We will continue to deliver strong revenue growth, but there will be headwinds in 2025.”
Rob Michael, AbbVie’s chief operating officer, has been thinking a lot lately as the company’s flagship drug, Humira, has been underperforming as the entry of biosimilars has hampered sales volumes and prices. Although the company has “some drivers that will offset Humira’s decline next year,” the economic downturn will hit AbbVie hard, Michael said. Part D redesign is likely to be: Enabling biosimilars to make a bigger impression In that market.
Still, big pharma is looking to Humira successors like Skyrizi and Rinvoq, as well as neuroscience products like Vraylar, to build momentum and offset the worsening impact of redesigns for 2026 and beyond. .
“We are gradually gaining access to more and more channels in the market, some of which are offered at lower prices. It’s also a sign that we’re reaching some of the more vulnerable patients, and that’s influencing pricing.”
Lars Fluagaard Jorgensen
Novo Nordisk CEO
IRAs aside, some new drugs are seeing more natural price declines, particularly super-popular diabetes and weight-loss drugs such as Novo Nordisk’s Ozempic and Wigovy. CEO Lars Fregard Jorgensen said this is all part of launching an entirely new class of medicines and learning the market position.
The net price of Wegovy is slipped down In the United States, this insurance was not applicable due to competition for coverage with Eli Lilly’s Mounjaro and Zepbound. While demand remains high due to supply constraints, Jorgensen remains confident the market will level out, saying the company “strongly believes in the value of our products, but we also have a desire to treat more patients.” “
