Pay or die – The drug price dilemma
20 October 2021
Bottom Line
Drug pricing has always been a polarizing and political subject. The recent Biden administration is pushing for more pricing measures, but most proposals won’t have a high impact or would not concern breakthrough drugs, to which we have the largest exposure. As more and more rare disease drugs are released on the market, their multi-million-dollar price tag is likely to put more strain on the health system. Instead of lowering their prices, which could kill innovation, new ways of payment must be used.
New trends are already shaking the status quo: Intra-market competition with other biotechs, the threat coming from China, and new value-based pricing models adopted by pharma companies. Our exposure to China, the entire value chain, and advanced tech platforms addressing unmet medical needs provides our portfolios with an edge against such pricing pressure.
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