Axtria Blogs have continued to follow the uncertain course of the US economic recovery, like an “accordion” or repeating “W-shape” induced by the COVID-19 pandemic [1-2]. Newly released data and economist predictions now suggest that recovery of the US economy will take years (until 2022), not months, in returning to a pre-coronavirus economic level . Federal Reserve Chair Jerome Powell has likewise cautioned that the US economy needs continued stimulus from Congress to maintain the recovery, something that appears unlikely before the presidential election, given the political stalemate between Democrats and Republicans .
Choosing Between Food and Medicine
The COVID-19 induced recession has taken another ominous turn as the Census Bureau recently reported that almost 30 million Americans responded in a survey that they did not have enough food to eat at some point during the week before July 21 . A record number of people are also going to food banks . The reason for this situation is the combination of COVID-19 mandated shutdowns with their resulting effects and the economic consequences from high unemployment generated from these business closures. This turn of events is not surprising as similar effects were seen during the Great Recession of 2007-2009. The economic fallout from the COVID-19 induced recession is much more severe, with the unemployment rate still above 10% (the Bureau of Labor Statistics reported a 10.2% rate for July 2020) . This means people are increasingly having to make tough choices about where to spend scarce dollars for necessity items like food, medicine, rent/mortgage, or essential utility bills.
“U.S. Economy Sees Record Downturn”
The headline on the record drop in U.S. GDP for Q2 2020 at an annual rate of 32.9% and 9.5% from the previous quarter, The Wall Street Journal, print published July 31, 2020 .
Many in the pharma industry currently fear that the broad use of price controls, once thought of as being theoretical and a remote possibility, is now an inevitability. This author has previously noted in articles published on the Axtria Research Hub that the imposition of price controls represent an existential threat to the industry. The political forces that once shielded the industry from the imposition of direct price controls for federal reimbursement on programs like Medicare have been severely weakened. The imposition of such federal program controls will effectively spillover into private insurance markets.
“VIRUS WIPES OUT 5 YEARS OF ECONOMIC GROWTH”
The headline on the record drop in US GDP for Q2 2020 at an annual rate of 32.9% and 9.5% from the previous quarter, The New York Times, print published July 31, 2020.
The following blog is an expanded summary of proposed research accepted for delivery at the upcoming 22nd ISPOR Annual International Meeting, Research Poster Presentations - Session I, entitled “Health Care Use & Policy Studies”, to be held in the John B. Hynes Convention Center (Level 2) in Boston on Monday May 22, 2017 from 8:30am-2:30pm. The poster author discussion hour will be from 1:00-2:00pm.
Research presented from Mylan Pharmaceuticals at the recently held 2016 annual meeting of the American Society of Clinical Oncology (ASCO) generated excitement within the medical community in demonstrating comparable clinical trial results of their biosimilar drug Myl-14010 to Herceptin from Roche.1 This is the first biosimilar drug to show comparable effects to a biologic drug in the treatment of cancer. Herceptin has been a game-changer in the treatment for about 25% of breast cancer patients.1 The hope and promise is that biosimilars will bring less expensive copies of many biologic cancer drugs, thereby increasing affordability and expanding access of these therapies around the world and not just in developed economy pharmaceutical markets. While this is the hope, the question is whether biosimilars will deliver on this promise? What does economic analysis predict regarding the price effect of biosimilars in the US drug market?
Pharmaceutical companies spend a substantial amount of money on sales & marketing (S&M). One recent article noted the top 10 pharma companies spent $98.3 billion on S&M in 20131. Internal pharma company commercial operations units (skill center functions that support and connect S&M) spend substantial time and resources along with their consulting company partners to measure the return on investment (ROI) and effectiveness of S&M spending. Likewise, academic marketing scholars have also focused a great deal of attention researching the life sciences (encompassing companies in pharmaceuticals, biotechnology, and medical devices).