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Today IMS announced that pharmaceutical sales were slower this past year. There was a 1.3% increase in 2008 for a total sales of $291 billion. This percentage compares to an increase of 8% in 2006. Slowing sales aren’t surprising given the state of the economy and continuing erosion of patent protected products. Still this is better than the percentage loss in the auto industry (Ford experienced a 34% decline in sales late in 2008).
Sales could rebound somewhat if the economy picks up in 2009 but potential changes in the healthcare system remain a significant variable.
The top selling category was anti-psychotic medications- possibly a reflection of the sharp economic decline in the U.S.
The other leading concern currently are changes in the CME field. Give your input by taking our poll on the home page and come back to our site for more on CME over the coming months. If you took our recent poll on the FDA commissioner and voted for Margaret Hamburg, you were right! She is the current pick by President Obama.
Our poll has been updated to add Margaret Hamburg the current front runner for the FDA commissioner position. Will there be a vetting glitch or will it be smooth sailing?
The New York Times has declared Dr. Hamburg as the winner with Joshua Sharfstein as Deputy Commissioner. This finally gives the FDA a succession plan and may avoid some of the ups and downs that has lead to problems in the past.
The clock is ticking to give your input on our poll!
After two intensive days, I’m at the DIA Marketing Pharmaceuticals in a Time of Change conference, I’m back in the office and reflecting on lessons learned. The overwhelming sentiment this year was that “time of change” was a serious understatement.
Continuing medical education is undergoing revolutionary change unprecedented in the history of the field due to intense environmental and political pressure. Numerous companies will or have voluntarily or involuntarily exited the field and consolidation can be expected to continue until a new equilibrium is reached.
Overall the pharmaceutical industry is being buffeted by the same political and economic changes that are affecting other industries. Because the pharmaceutical industry had already been preparing for change (due to loss of cash cow products) and because healthcare products are necessities the industry is likely to fare somewhat better than others.
However, regulations on both the state and federal level are changing rapidly requiring companies to invest money and manpower in keeping on top of current requirements. In addition, technological changes are altering long held marketing strategies forcing companies to wade into untested waters just at the time the regulations are in flux and legal penalties are high for transgressions.
This year won’t be for the faint of heart but for those who enjoy challenges, there will be an abundance to choose from.
When I founded Hughes BioPharma Advisers in 2005, the term biopharma was used infrequently. I sometimes got blank stares or queries like, “What is biopharma anyway?”.
Now with the purchase of Wyeth by Pfizer and the pending sale of Genentech to Roche, biopharma is ascending. The large pharmaceutical companies are looking more than ever to biotech companies for creative new products. What’s even more exciting is that these biotech companies aren’t simply being engulfed but are changing the whole perspective of large pharma companies. Biotech products are being looked at as the future of the industry.
Small molecule pharmaceutical products aren’t going to go away but we can expect to see a blending of them in product portfolios.
This change will be good for both the pharma and biotech industries as well as for patients. Pharma companies have the cash to purchase biotech companies. Biotech companies are in desperate need of funding. Selling to a pharma company keeps their products in the pipeline. Patients benefit by having more and, hopefully, better treatment choices.
The future of pharma looks more and more like biopharma.
This blog will offer trend analysis and discussion on the future of the pharmaceutical and biotechnology industries. Future posts will include industry trend discussion from guest bloggers.
The remainder of 2008 and well into 2009 looks like it offers many challenges. Tune into the pharma future network as you plan strategic moves for your company or your career.
