Biopharma industry optimistic about growth in the next year

""

The biopharmaceutical industry is revealing increasing optimism regarding its growth prospects over the next 12 months.

While the upward trend is a positive sign, it remains below the levels of confidence seen in 2022, finds data and analytics company GlobalData.

In a recent survey, ‘The State of the Biopharmaceutical Industry 2024 (mid-year update)’, 73% of surveyed healthcare industry professionals felt optimistic or very optimistic about the industry’s growth during the next 12 months. This is up by 13% from the data received six months ago (60%) and up a further 13% from 2023 (47%), but still below the levels seen in 2022 (81%).

Urte Jakimaviciute, Senior Director of Market Research and Thematic Intelligence at GlobalData, commented: “Despite the ongoing challenges in the geopolitical landscape, there is a gradual decline in inflation, which provides a more stable environment for biotech funding to show signs of recovery, signalling renewed confidence. Supply chain disruptions that plagued the pharmaceutical industry during the past few years are becoming less intense. This gives hope that the industry is on the path of rebounding from the impact of the Covid-19 pandemic and subsequent geopolitical conflicts. “

In the survey, industry professionals indicated that geopolitical conflicts and drug pricing and reimbursement pressures will be the main hindrances for the pharmaceutical sector’s growth in the next 12 months.

Jakimaviciute continued: “Pricing and reimbursement pressures have a direct impact on pharma’s profitability and investments. For example, Inflation Reduction Act (IRA) that aims to reduce drug prices in the US, introduced government price negotiation for selected pharmaceuticals, with companies refusing to participate in pricing negotiations facing steep penalties.”

Diana Spencer, Senior Digital Content Editor, DDW

Related Articles

Join FREE today and become a member
of Drug Discovery World

Membership includes:

  • Full access to the website including free and gated premium content in news, articles, business, regulatory, cancer research, intelligence and more.
  • Unlimited App access: current and archived digital issues of DDW magazine with search functionality, special in App only content and links to the latest industry news and information.
  • Weekly e-newsletter, a round-up of the most interesting and pertinent industry news and developments.
  • Whitepapers, eBooks and information from trusted third parties.
Join For Free