Monday, November 18, 2013

18/11/2013: Some cautiously decent news for Pharma sector?..

An interesting article from McKinsey on the drivers for rapid increase in the new drugs approvals by FDA: with 39 new drugs approved in 2012 alone - the decade high. 2011-2012 approvals were 24% ahead of long-term average.

Good news for Ireland's number one goods-exporting sector, but several caveats in place:

  • FDA approvals are accelerating both due to pipeline of new formulas, and on acceleration in late stage trials approvals. The former is driven by biophrama - with much less prevalent activity presence in Ireland, although we are aggressively competing for the sub-sector. 
  • Pharma sector is still driven into lower costs operations - something not exactly favouring Ireland.
  • Irish market access to the EU is becoming problematic due to cost cutting efforts of the European health systems.
  • Approvals seem to be in new submissions, so less likely to generate blockbusters we need to replace to stay put in terms of pharma sector exports.
Still, to quote McKinsey: "We are cautiously optimistic that this development signals a turnaround in pharmaceutical R&D productivity"

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