As debate continues over U.S. drug prices, pharmaceutical companies may need to increasingly show greater efficiencies and research and development productivity in 2019, according to Fitch Ratings.
The credit rating agency said the industry will face regulatory risk in 2019 and increased pressure from commercial payers to focus on the value of medicines. The probability of legislative action is slimmer given a split U.S. Congress, Fitch says.
"However, pharmaceutical firms may increasingly need to demonstrate the value of products, placing increased emphasis on R&D productivity to develop products with meaningfully improved efficacy and fewer side effects," Fitch said.
The agency continued: "The industry is responding to concerns of payers and engaged in evaluating modified pricing models such as those based on patient outcomes. Pharma pricing models have begun to employ a value-based healthcare approach based on clinical value, system effects and returns. We believe concerns around patient value helped fuel the U.S. pricing debate and expect the focus on value and patient outcomes to intensify."
More articles on pharmacy:
January's first drug price hikes average 6.3%: 5 notes
Judge blocks Trump administration policy cutting drug payments to hospitals
Biosimilars cost up to 80% more in the US than Europe: Here's why