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news.The current pharmaceutical industry business model is both economically unsustainable and incapable of acting quickly enough to meet the demands of global markets, according to a report from PriceWaterhouseCoopers.
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The UK accountants predict that by 2020 the global pharmaceutical market will more than double in value to $1.3 trillion, driven by soaring worldwide demand for medicines and preventative treatments as the population grows, ages, becomes more obese and more prosperous. However, pharmaceutical companies face a lack of new products in the pipeline, rising marketing expenses, increased legal constraints and tarnished reputations, according to the report.
Steve Arlington, author of the report for PWC said: “The industry is investing twice as much in R&D as it was a decade ago to produce two-fifths of the new medicines it then produced. It is simply an unsustainable business model.”
The report suggested strategies such as a focus on preventative medicine, rather than treatment, developing drugs for unmet medical needs, and an end to the blockbuster model as possible solutions. Dr Arlington also said that governments and payers must play their part and ensure the industry is rewarded for its efforts.