Posted:July 15th 2019
Article by Brian McMorris of Futura Automation
Love him or hate him, as the populist that he is, President Trump seems to have a habit of following through on his campaign promises. One such promise in 2016 was the dramatic reduction of pharma prices to consumers. It was met with skepticism. “How can THIS President do what no others before him, all certainly much more qualified and connected, accomplish this feat?” It probably will not get done before the election in 2020 since it is complicated, controversial and we are in the political season. But here we are, mid-2019 and the new policy is starting to take shape with legal trial balloons. It could be bad news for the Life Sciences industry margins unless companies respond in kind. Cost MUST be taken out of R&D and production to protect industry margins. Futura Automation can help companies reduce costs.
The Executive Office has laid out several plans to implement the policy. Because all plans must necessarily regulate pricing in some fashion, they naturally generate quite a bit of opposition from the pharma industry and its lobbyists. See article: Trump Suggests Executive Order on Drug Prices, With a Scope That Is Unclear
But the basic outline is still intact and ways will be found to address the American national need for price containment in what is not at all a “free market” for “on patent” drugs and medical devices. Price reduction does not occur until specific treatments lose patent protection and the industry is very good at extending that protection for multiple cycles. But nothing will stop the pressure to reduce Life Science costs as the payment side of the healthcare industry continues to concentrate, perhaps ending in a universal plan in America like most other advanced economies. The Life Sciences industry will be required to reduce cost.
Automation of processes, including robotics for handling, and digitization of compliance reporting (utilizing our solution set Tulip Interfaces) will continue to drive the industry cost reductions.
Contact us to learn more about Tulip Interfaces for pharmaceutical applications.