Axtria White Paper

White Paper


Is Biopharmaceutical Industry Drug Demand Becoming More Recession Sensitive?

The Great Recession in the U.S. not only marked a period of the longest and by many measures the largest economic downturn since The Great Depression of the 1930’s, but also altered assumptions by business executives about the relationship between recessions and biopharma industry drug demand. This white paper explores three questions about the future relationship of economic recessions to biopharma drug demand given evolving industry market and environmental trends:

1. Is biopharma industry drug demand becoming more recession sensitive? If “yes”, why and how?

2. What role does commercial analytics have in allowing biopharma companies to mitigate the potential adverse effects of recession-induced demand effects on business operations?

3. What does the future hold on the impact of the next severe recession on biopharma industry drug demand?

The growing industry shift to specialty medicines introduces a greater inherent risk to companies from the next recession. The result will likely produce even bigger adverse effects where biopharma drug demand will become more recession sensitive as the biopharma market structure shifts toward specialty medicines. A key mitigating factor is for companies to put in place systems and capabilities in commercial analytics to better understand how changes in the business cycle affect drug demand and related measures, and how derived learning and insights affect changes in business policy.

Dr. George A. Chressanthis is currently Principal Scientist at Axtria. He brings a unique combination of professional experiences into the analysis of strategic and operational issues affecting the biopharmaceutical industry.

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