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Finding solutions that transform business

Current situation

The life-science industry is changing rapidly, and today’s issues and challenges are increasingly complex and difficult to resolve. A stable and predictable market is a thing of the past.

Key factors such as declining research and development (R&D) productivity, rising costs of commercialization, increasing payer and patient influence and shorter exclusivity periods have driven up the cost per successful launch to more than $2 billion while significantly reducing ROI and growth. And emerging demographic and new healthcare technologies are suggesting even stronger structural changes are coming.

 

The current financial crisis is likely to increase focus on further priorities and cost-containment initiatives.

Most countries have systems where healthcare personal are strongly encouraged to use certain products based on some kind of HTA where value offered is balanced off with price. The most common methods are:

  • Approval for general reimbursement
  • Product recommendations based on tenders
  • Positive / negative lists
  • Maximal reimbursement price
  • Preferred drug per indication
  • Generic substitution / preference of Biosimilars

But do they solve the long term challenges?

The future ?

  • There are still significant unmet medical needs that only can be resolved by more research and development.

  • The society's ability to absorb additional cost will be limited.

  • One need to find solution's which reward new cost-effective solutions.

  • A more holistic approach to total healthcare related cost might free up more resources to prevention and early intervention.

  • A closer relation between government and industry may open for a more productive and constructive cooperation that delivers better and more cost-effective solutions to current healthcare challenges.