Pharma: a tale of rising demand and squeezed pricesDownload the Document
Spending on prescription drugs is on an upward trajectory worldwide, and especially in Western Europe and the US. Pharma group profits rose by 2.9% in 2017. Reasons include ageing populations, changing lifestyles and pressure to access innovative treatments, and the rise comes despite the efforts of governments to control healthcare spending. The US situation is particularly uncertain, with the Trump administration’s attempts to repeal ‘Obamacare’ meeting difficulties.
Strengths and weaknesses
Coface analysts predict research and development by pharmaceutical companies to pick up in 2018, and for prescription sales to grow – by 4% France, UK, Germany, Italy and Spain for example. This is driven by the rise in specialist drugs, which now amount to over a third of the total. Everywhere pharmaceutical companies are under pressure to provide discounts and lower prices by governments facing increasing demand. In the US alone, health insurance costs are likely to rise by as much as 18% in 2018.
Sign up for the latest news
Coface’s annual Asia Corporate Payment Survey evaluates the payment behaviour of companies across nine economies in Asia Pacific. Data collection took place during the fourth quarter of 2019, before the COVID-19 pandemic, and
Although the second quarter of 2020 is shaping up to be the most challenging period of the year, there are now good reasons to think that the road to recovery will be long and arduous. Despite immediate tax deferrals, liquidity