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Jan
12
ragupathyrenganathan
Trinity Partners Unveils 2016 Predictions for the Biopharmaceutical Industry
Pharma News
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1. Drug pricing and biosimilars in light of the upcoming Presidential election:
Thanks to recent media uproar around companies like Turing Pharmaceuticals, the company that upped the price of a life-saving drug for parasitic infection by 5,000 percent, drug pricing is expected to be a huge topic around the presidential election over the next year with candidates sharing proposals to help address this issue. This will also likely bring continued attention to biosimilars, which are drugs designed to have properties similar to biologics that have previously been approved. In the next year, close attention will be paid to their rate of adoption in the US compared to the past uptake of generics, especially given obstacles such as pricing, strict regulations and questions around marketing.

2. The revenge of the DTC ad:
As it becomes more and more important to prove a drug’s worth, pharmaceutical companies are increasingly pouring money into Direct-to-Consumer ads. For example, Biogen recently announced 800 new layoffs in order to shift that money towards MS patient programs. However, this type of investment may bring on controversy in 2016. Physicians have mixed feelings on DTC ads, and the American Medical Association recently voted for a ban on all direct-to-consumer advertising for drugs and medical devices from their publications.

3. Business Models will continue to change:
Deal making M&A will stay at a high level in 2016 thanks, in some part, to inversion. Companies such as Pfizer are moving their addresses to Ireland where the corporate tax rate is only 12.5%. Acquisitions of biotechs will also be an interesting space to watch in 2016, especially in terms of valuations. In 2015, companies that drove up their own price have ended up in hot water, so the return to more rational pricing for deals is imminent in 2016.

4. Pharma companies will look to unlock the potential of gene editing:
In 2016, the rise of gene editing will continue. But the question of how businesses can take advantage will be at the forefront; specifically as it progresses from being a research/screening tool to one that promises important applications in drug development, cell therapy and bioprocessing.

5. Precision Medicine momentum will continue:
The momentum that began with President Obama’s 2015 Precision Medicine Initiative will continue into 2016 thanks to a $215 million investment in the President’s 2016 budget. The investment raises hopes of providing drug developers with greater insights into the biological, environmental and behavioral influences on diseases.

About Trinity Partners
Trinity Partners is a trusted life sciences strategy consulting firm that takes a personalized approach to working with pharmaceutical, biotech, medical device, and diagnostic clients worldwide to create tailored, evidence-based solutions that drive business strategy and impact bottom lines. To learn more about our Partners, click here: [http://www.trinitypartners.com/index.php/our-team/our-partners/]



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