Pharma sales growth is being crimped
Here's a remarkable fact: More than 20 percent of the $320 billion in biopharma revenue notched in the first three quarters of this year can be attributed to the cumulative effect of price increases over the last five years.
There's good reason to think the good times may not last, though. A new analysis suggests the trend will slow considerably as drug makers face political pressure over pricing practices.
Leerink analyst Geoffrey Porges, who analyzed data for 17 large drug makers, has a warning for investors: “the negative effect of ... slowing price increases will have a powerful effect going forward.”