Pricing Power Is Shifting Away From Pharmaceutical Companies to the Consumers

Pricing Power Is Shifting Away From Pharmaceutical Companies to the Consumers

The drug industry is facing price uncertainty, as most companies are starting to modify their prices according to the consumers’ needs and specialists believe that the pricing power will continue to shift in the future. Because of that, there is a lot of uncertainty in this sector and we cannot say for sure how the payers’ influence will rise in the next years.

Drug pricing is a priority of the US administration

Drug prices are a major issue for the Trump Administration. President Donald Trump has talked about many times about this topic and he has also tweeted about it.  Trump has talked about the possible direct negotiations between the government and drug companies. He also considered allowing drug imports from Canada in order to bring cheaper priced drugs for the American population. All these things pressured the drug companies into setting lower prices and focusing more on products that are accessible for everyone.

Price moderation

Several pharmaceutical companies have noticed the political scrutiny on drug prices and are trying to act according to it. This year, multiple drug companies have started to moderate their prices. Lower drug prices have appeared on the market and they are lower than they have ever been in the past.

New drugs have lower prices

According to Jami Rubin “The industry is starting to work with payers in setting the prices of new drugs. That’s never happened before.” Drug companies are starting to consider the customers’ needs. As a consequence of that, several new products, biological drugs, have been introduced on a market with a lower price than most experts would have anticipated. This is a big sign that payers are beginning to shape the drug pricing and this is something that has never happened in the past.

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