Which stories were the most interesting in 2019? And, what should we look forward to in 2020?
In this video, we answer these questions.
This is the third or fourth year in a row in which we produce an end-of-year video.
This one is different because the stories from 2019 which we selected may have significant long-term implications for our industry. Indeed, the “past” stories from 2019 and the “future” stories for 2020 could be blended into a single segment rather than two.
But we will let you be the judge.
If there is one topic that may have the largest impact on our industry moving forward, it is the upcoming US Presidential elections.
We have never lived through a period in which our industry has delivered so many remarkable therapies while simultaneously being criticized and blamed for seemingly every ill under the Sun.
There is no question that our industry has issues. We certainly need to come up with ways to develop drugs faster, and at lower cost. And we need to pass these savings along to payers and patients such that the industry remains profitable while prescription drug cost growth remains at its reasonable pace.
The industry needs to do a better job communicating the value we bring to healthcare. We also need to do a much better job placing “skyrocketing” drug prices into their proper context. The fact is that prescription drug share of healthcare spend has been declining for the past three years.
While it is an oversimplification to blame the “middlemen,” we clearly need to educate the public on how drug development and distribution actually work, and not let ignorant politicians pass onerous legislation which only helps their re-election campaigns.
Reminder: #Drug spending is NOT “skyrocketing.” https://t.co/zRo9MisVP5 @CMSGov
— Adam J. Fein (@DrugChannels) December 6, 2019
For 7 of past 9 years, slower growth on outpatient #prescriptions vs. #hospitals and #physicians. (2014/15: #HCV cure)
Drugs’ share of US #healthcare $$ down, from 9.9% in 2015 to 9.2% in 2018. pic.twitter.com/dj3EYjE5GV
Of course, no end-of-year video would be complete without some discussion of China.
In November, AstraZeneca announced three very large initiatives in China:
- Global R&D center with 1,000 employees to discover new drugs for diseases prevalent in China
- A separate research center focused on applying artificial intelligence to accelerate drug discovery and development
- Collaboration with a Chinese bank to raise a $1 billion fund to invest in biotech innovation in China
Wow.
Many other companies are collaborating with Chinese companies to sell their products in China, of course. But this major AstraZeneca initiative is unusual in that it is focused on drug discovery and development for diseases prevalent in China.
It would not surprise us to see more “Western” companies make similar investments in 2020 and beyond.
Post scriptum: The US Federal Trade Commission was just named Disruptor of the Year. Certainly not an award we would want, given this context…