Boosts And Barriers: Finance Impact on Pharma in 2024

The pharmaceutical industry is anticipated to encounter a range of financial obstacles in 2024, as per a recent survey conducted by GlobalData. While factors such as inflation and pressures on drug pricing are expected to have adverse effects, the expiry of biologics patents is projected to provide support for the industry’s expansion in the foreseeable future.

The survey has indicated that pharmaceutical companies are primarily troubled by the impacts of inflation, geopolitical disputes, and pressures related to drug pricing. These factors are anticipated to introduce uncertainty into the economic outlook and hinder the industry’s progress. The implementation of price controls in major markets is also a significant concern, as it restricts the ability of drug prices to increase at the same rate as general inflation.

Notwithstanding these challenges, the report has emphasised that certain factors could have a positive influence on the pharmaceutical industry in the near term. Environmental, Social, and Corporate governance (ESG) factors, along with the expiry of biologics patents, are expected to simplify operations and generate growth for the industry.

To overcome these challenges and flourish in the market, the pharmaceutical industry is recommended to concentrate on innovation and resilience. The modernisation of research and development (R&D) models, as well as the adoption of emerging technologies, are cited as strategies to gain a competitive advantage in the market. Furthermore, the report has identified immune-oncology drug development and real-world evidence (RWE) as emerging industry trends that could shape the future of the biopharmaceutical sector.

To sum up, the pharmaceutical industry is on the brink of facing both obstacles and opportunities in 2024. While financial limitations such as inflation and pressures related to drug pricing present significant challenges, the expiry of biologics patents and a focus on innovation are expected to propel growth and resilience in the industry. As the industry navigates through these financial factors, it will be imperative for pharmaceutical companies to adapt and strategize in order to achieve success in the coming years.