The Optimistic Pharmaceutical Industry Heads into 2014
The economy’s slow improvement has meant a rosier outlook for a number of industries, not least the pharmaceutical industry.
A business confidence report by Kable for the first quarter of 2014 shows a rosy outlook for the majority of pharmaceutical executives surveyed. 74% of executives were sanguine about the prospects for their company, and 60% believed the industry as a whole had strong growth prospects for the next six months. In fact the optimism levels of executives as a whole leapt by 8-10 percent page points over the last quarter of 2013.
To what can this confidence be attributed? Improved economic conditions around the world, new products ready to hit the marketing, and the emergence of new markets in which pharmaceutical companies have invested are among the most important pharma trends.
How the ACA Will Affect the Pharmaceutical Industry
As with the medical device industry, the pharmaceutical industry also stands to be changed by the Affordable Care Act’s implementation in 2014. From the looks of it, the pharmaceutical industry stands to overwhelmingly gain. According to Forbes, the industry should receive $10 – 35 billion of additional profits in the first decade of implementation. By 2020 revenue should be increased by one third according to GlobalData of London. This is despite expiring patents on some very well-known drugs, such as Lipitor. No wonder pharmaceutical executives are optimistic – GlobalData suggests $115 billion in new business could be generated in the next ten years for pharma. The influx of new patients simply overcomes the other hurdles the industry faces with competition from generics.
The sunny outlook in pharma trends will not surprise the careful observer. Pharma was an important partner in the construction of the bill, even though it exacts its costs in the form of greater prescription drug rebates. Being present in negotiations has paid off it seems, with the good outweighing the bad.
A Pharmaceutical Sales Rep’s Outlook
With so many new patients stressing the system, independent pharmaceutical sales reps should have their hands full indefinitely. Adding new lines and adjusting to the market should provide great opportunities moving forward into 2014 and beyond. For companies looking to jump out ahead of these trends, adding pharma sales jobs, or even more easily, taking on independent, commission-only reps, will help you expand your business rapidly.