By Rob Starr, Content Manager, Big4.com
According to Pharma 2020: From vision to decision, a new report issued today by PwC, the pharmaceutical industry is on the cusp of a golden era of renewed productivity and prosperity.
One of the major hurdles the pharma industry faces is the rising healthcare bill. The demand for medicines is rising and global pharmaceutical sales could increase by nearly 40 percent to roughly $1.6 trillion by 2020. Yet the expenditure as a percentage of gross domestic product (GDP) is climbing in countries in every income bracket and most steeply in mature markets where the industry has historically made most of its money. At a time when all economies are feeling the tougher times, the industry has to position itself as part of the solution, says PwC.
In mature markets, there is an enormous opportunity for the pharmaceutical industry to help payers save money and for providers to deliver better quality care for less money, according to PwC’s report. Approximately 85 percent of global health spending currently goes to healthcare services delivered by physicians, hospitals and other providers, and less than 15 percent goes to medicines. By demonstrating that medicine can reduce spending on costly medical services and procedures, PwC estimates that pharma’s share of healthcare expenditure could rise to 20 percent by 2020