Written by Mark Osterman, Senior Vice President, Kineticos
With the presidential campaigning madness over, we’re now left wondering what impact a Trump presidency will have on the BioPharma industry. Not that it tells the whole story, but the IBB and XBI reacted favorably, and were both up shortly after the election results were made public. It may have been a correction for the uncertainty expressed in October, but the President-elect has generally been viewed as a positive for healthcare, especially BioPharma. In regards to Trump’s promise to rip up Obamacare on day one: that’s another topic for another day.
The BioPharma industry has been under significant fire for pricing pressures and, in my opinion, there is justification for some of the criticism. During the tumultuous election period, there were glaring examples of flagrant, unjustified price increases, such as Turing, and Mylan. The industry was reactive and apprehensive on what might occur if HRC had been elected. Now, there is an opportunity for the industry, as a whole, to be proactive in demonstrating how it can create significant value for patients and the healthcare system.
This demonstration should be conducted through industry organizations, and reflect an agreed-upon approach for communicating value. Through public relations, patient advocacy, medical societies, and other organizations, biopharma has an opportunity to illustrate the important advances and quality of life improvements that have come from innovation within the industry. These efforts will not only help the public understand, but also support, pricing and reimbursement efforts.
With new, breakthrough treatments in areas such as cell and gene therapy on the horizon, the importance of communicating the intrinsic value of innovation to the general public is imperative. These new therapies will transform the lives of patients, caregivers, and others within the healthcare system. They will also be costly to develop, manufacture, distribute, and administer to patients, and thus will carry a significant price tag. In anticipation of continued pricing scrutiny, there has never been a better time to build a communication platform that highlights all the issues, is able to demonstrate the value of innovation to patients and caregivers, and justifies the price of such innovative therapies.
By proactively addressing these concerns through a concerted effort to educate the public on all the potential positives that these breakthrough therapies can provide, the industry will be in a better position to appropriately address these concerns and assuage any apprehensions held by the public with regards to pricing. It certainly will be interesting to see what the President-elect can do for our industry during his time in the Oval Office.
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Mark Osterman, Senior Vice President of Kineticos’ Biopharmaceutical Practice, brings 25 years of experience in the biopharmaceutical industry to the team. His team is focused on helping growth-oriented biopharma companies realize their commercial potential at the corporate, portfolio and product levels. Mark’s therapeutic expertise includes cardiovascular, pulmonary, metabolics and cell/gene therapy.