The new year has started off with a record high number of COVID related hospitalizations from the Omicron surge that has surpassed the number of cases in January 2021. The Omicron variant is predicted to infect 50% of the European population in the next few weeks while 3 cities in China are under strict lockdown. With the vaccine rollout we have seen a decrease in the number of COVID related hospitalizations but now a decrease in the number of COVID related deaths signaling that this next year we will continue to face the fallout from the virus this year. The top issues facing the pharmaceutical industry in 2022 are COVID-19, price hikes of drugs and clinical trial/drug development acceleration.

COVID-19

Even with the availability of the vaccine, we still faced challenges this year due to the easily transmissible variants delta and omicron. Along with encouraging the population to get vaccinated, another way to protect public health is to cover the cost of over the counter tests. A 3 billion dollar investment from the Department of Health has increased the number of available over the counter tests from 46 million in October to 300 million available now. Starting this month, the Federal Government will require private insurance and group health plans to cover the cost of at-home tests upfront or reimburse purchases. Leslie Silva with Tully Rinckey PLLC said, “At this point, it’s not really a matter of getting reimbursed, it’s a matter of actually being able to find a test.”

Price Hike on Drugs

According to AHIP, drug manufacturers have already raised the price of at least 582 brand-name drugs this year, with an average increase of 4%. Pfizer has increased the prices of more than 130 drugs and GlaxoSmithKline raised prices on more than 30 drugs, including Zejula, a cancer treatment. Due to changes in supply and demand, price changes are inevitable but patients are paying a heavy price for their treatments.

Clinical Trial and Drug Development Acceleration 

With no other option than to produce a vaccine in record time due to the COVID-19 pandemic, the pharmaceutical industry has experienced exponential growth over the last 2 years. As we previously discussed in our blog A Shift in the Clinical Trial Space: Decentralized Trials, clinical trials will be accelerated through the use of AI and technology to increase patient access and reduce timelines. It is also predicted that precision imaging tools called radiomics will be adopted. The aim of radiomics is to extract quantitative features from medical images using data-characterization algorithms. By implementing radiomics in the drug development, researchers can better test the efficacy of new medications on specific diseases.

The obstacles we faced in 2021 provided the experiences and tools to conquer the challenges of the future. As we continue to progress through the new year, the pharmaceutical industry in both US and foreign markets is predicted to grow exponentially. With the implementation of new technologies and more government support, pharma companies across the globe will continue the push to develop treatments for patients in need.

The PharmaOut team remains committed to doing our part to fight COVID-19 and help keep our families safe. Our team of expert recruiters and consultants have years of experience to assist our clients in successfully continuing their business with our staffing, consulting, HR and investigator meeting services. Please contact us if you would like to discuss how PharmaOut can be your strategic partner.

Uncategorized