Is This the End of Premium Pricing in Drug and Device Innovation?
Summary
Opinion Xconomy San Francisco — Healthcare costs in the United States today account for approximately 18 percent of our gross domestic product—far more than any other developed country.Americans’ average life expectancy and the efficiency of our healthcare system are ranked near the bottom of countries with advanced economies.The purchasing power of the average American couple with two children has largely stagnated over the past decade.Against this backdrop, the Affordable Care Act has triggered an intense political struggle and sent traditional biopharma and medical device companies scrambling to understand precisely how their core business models will change as healthcare reform rolls on.In my opinion, one major trend affecting the biopharmaceutical and medical device industry will be an erosion in premium pricing for many disease franchises.