Tax, customs and new drug pricing – what we can expect

In this week's Expert View, EY partner Minde King provides context on tax and customs regimes for drugmakers, including discussion of the implications of new drug pricing strategies.

Sophisticated products in the form of biologics and large molecules, produced by living materials from humans, animals, plants, or microorganisms, are increasingly prevalent in today’s market. These types of drugs may include cell and gene therapy (CGT) products typically produced in low numbers.

In-vivo and ex-vivo therapies show promise for novel and potentially curative products, tailor-made for patients. Another increasing trend is orphan disease drugs, which tend to have very high costs because of the limited pool of patients – despite incentives put in place by the Orphan Drug Act of 1983.