The rise in cheaper generic drugs’ sales does help ease the financial burden on public social security schemes. But as long as drug makers know they can cash in on bringing novel drugs to market, the current bullish mood is likely to last.
The political debate on drug prices will rage on in 2016, particularly in the United States which is in the throes of a presidential election campaign. The topic might even become a hurdle for drug makers. Still, this year could be marked by significant clinical advancements in immuno-oncology.
As for mergers and acquisitions, these should remain in the spotlight even if Pfizer’s USD160bn bid for Allergan might prove hard to match. Estimated at USD750bn in 2015, we expect the global prescription drug market to grow to USD770bn in 2016.