Mixed outlook for pharmaceutical industry following US Healthcare Reform; BIO and GPhA have different views on biosimilars

23 March 2010

The US House of Representatives passing the biggest reform of health care in the USA for 40 years is a double-edged sword for the pharmaceutical industry (The Pharma Letter March 22), according to Tijana Ignjatovic, strategic healthcare analyst at Datamonitor.

The industry will be grateful for some certainty on the future market outlook and, overall, there is a strong belief that the pharmaceutical industry will benefit from the reform. However, while many factors will determine the financial impact of proposed US healthcare reform on the branded pharmaceutical industry, Datamonitor believes that there are potential short and long-term dangers.

In the short term, it is likely that imposed discounts and rebates, in addition to raised industry fees will lead to a market dip. This could not come at a worse time for an industry facing patent expiries in 2011 that are set to wipe tens of billions of dollars off annual revenue.

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