Industry's Drug Pricing Power Is Running On Fumes

Feb 07 2019

• By Jessica Merrill

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Pharma is facing a big headwind in 2019 in the form of diminished drug pricing power. The pricing trend puts net drug prices squarely in the red for most large pharma manufacturers, but US lawmakers aren't likely to be reassured heading into an upcoming hearing on drug pricing.

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The pharmaceutical industry is facing a big headwind in 2019, as net price declines become the new normal. With most big pharma manufacturers having now reported fourth quarter financials and provided some financial outlook for 2019, it is clear industry's drug pricing power has been greatly diminished, at least when it comes to price increases on mature marketed medicines, and the result will impact growth.

Overall, drug makers mostly met or exceeded 2018 financial guidance, but big pharma companies made it clear investors should brace...

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