Written by Kevin Hampton, VP of Marketing, Kineticos
The first of two 2017 editions of the BCCI was launched last week and as the data starts to come in, I cannot help but wonder how the next few studies will be impacted by the Trump administration.
I’m sure some uncertainty related to the election was reflected in the January report, but technically, all of the research was conducted before the campaign trail really started to heat up last year. The volatility in the market continued to rise while Hilary and Donald were busy trading blows (sucker punches included) but even with that circus being over, plenty of questions still linger.
Perhaps the most obvious question pertains to the repealing and replacing of the Affordable Care Act. This will take some time to sort out but has the potential to make a huge impact on our industry and society as a whole. After all, approximately 10 million (I rounded due to varying bias sources) Americans signed up for plans sold on HealthCare.gov and that figure does not include the millions that are covered under Medicaid and CHIP (Children’s Health Insurance Program). Here’s a decent article if you’re on the fence about this topic.
Secondly, this whole notion of value based medicine may be impacted as well. My colleagues and I attended a local (Research Triangle Park, NC) event in late February that included an insightful panel discussion on the principles, ethics, upside and pitfalls of value based medicine. A key takeaway that was validated for me is the fact that there is too large of a knowledge gap between the industry and the general public on what it takes to bring an innovative therapy to market. If we cannot narrow that gap by educating the public, it’s going be tough for drug developers to continue to invest in drugs that the majority of patients either cannot or will not pay for. There remains a lot to be determined on this topic but it will certainly be interesting to see what developments come about over the next couple of years.
Lastly, something that we’ve been monitoring through the Biopharma CEO Confidence Index for well over a year is CEO perception of investor behavior. In our inaugural study, 53% of biopharma CEOs were very confident in their ability to raise funds. That number dropped significantly after the market took a hit in late 2015, but has finally crept back up to 51% in our most recent study. It took over a year for biopharma CEOs to regain confidence in the capital markets but I’m inclined to think that Trump’s business background will have a favorable impact on the investor community, which should bode well for biotech fundraisers. With that said, I’ll defer to the data so stay tuned for the results, which will be published at www.BiopharmaCEOConfidenceIndex.com in the coming weeks.
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Kevin Hampton, VP of Marketing, leads Kineticos’ marketing efforts and is focused on building a brand that reflects Kineticos’ deep life science expertise and passion for improving patient outcomes. Mr. Hampton is responsible for the strategy and execution of Kienticos’ thought leadership and lead generation programs and also supports the sales function within Kineticos to ensure objectives remain aligned.