U.S. drug spending dropped last year. While that may be welcome news for healthcare budgets, it's not so good for branded drugmakers. It may not be so good for patients, either.
Salesforce cuts are coming down at Eli Lilly, and 40% of its U.S. sales force will be out. According to the company, the drugmaker sent a state Warn Notice to 1,624 sales positions, of which about 1,000 will be let go.
Transparency may be a trendy topic in pharma these days. But while drugmakers have been opening their files on financial relationships with doctors--even edging toward sharing trial data--they haven't said much about proprietary pricing info. Discounts and rebates tend to be closely guarded.
Suffering Big Pharma well knows that primary-care drug spending slumped in the U.S. last year. That's the patent cliff at work. But now, there's a number for that pain: Spending on mass-market meds dropped 1.5% in 2012.
Takeda Pharmaceutical last week nailed down FDA approval for three new diabetes drugs--DPP-4 inhibitors--and it was none too soon, as today's earnings report makes crystal clear.
Today's look at AstraZeneca's ($AZN) bleak 2012 numbers highlights the market-crunching wallop many of the world's biggest pharma companies have suffered as megablockbusters like Plavix and Singulair have gone off patent. But a new analysis from EvaluatePharma concludes that the industry giants will have almost as much at stake again when the 2015 patent cliff arrives.
The patent cliff prompted branded drugmakers to get creative. Some diversified. Others megamerged. Others sold off products and divisions to get back to drug-development basics. Still others have done all three. And now that Big Pharma's makeover is well under way, it's Big Generics' turn.
We are in the midst of third quarter earnings reports, and they show with stark detail what the tsunami of patent losses means to the financial underpinning of drugmakers. It's a serious problem that will erode earnings for years to come. Pharmaceutical researcher EvaluatePharma estimates there are $290 billion of sales at risk from patent expirations between this year and 2018. Read the full report >>
GlaxoSmithKline chairman Christopher Gent is preparing to exit stage left. But he's not packing his bags just yet.
More job cuts at Pfizer ($PFE). The world's biggest drugmaker is shedding 300 from its Canadian workforce, or about 11% of its employees in the country. Hardest hit will be sales and marketing, particularly in primary care.