Beyond the focus on the specific value proposition of each new medicine and the actual and perceived pricing pressures on the biopharma industry (which will be at the forefront during the U.S. presidential campaign), the accelerating implementation of the Affordable Care Acts’ policies and controls will alter the power structure and incentives throughout the healthcare system. Healthcare is moving to a centralized, policy-driven business, particularly as it relates to reimbursement. It will become increasingly difficult to differentiate new medicines and achieve returns necessary to incentivize the financial community to invest in risky and costly development programs which must be undertaken to address diseases that, if left untreated, have the potential to bankrupt the healthcare system.
President of Euclidian Life Science Advisors. He was the former CEO of Chimerix, Alteon, and Biocyte and has 30 years of experience creating, managing, and financing biomedical companies.