Pharma Industry to Continue Facing Inflationary Pressure Through 2023

Syringe with glass vials and medications pills drug

High inflation rates will continue battering the pharma industry throughout 2023, according to a new Pharmaceutical Technology article. Although inflation appears to be abating in the US this year, it may fall more slowly abroad, impacting growth. In addition, drug pricing reform in the US weighs heavily on the industry’s minds, despite changes not being implemented until 2026.

According to Eoin Ryan, “Similar echoes are heard in Europe, where pressure to curb price growth will stay a priority. However, the rigidity of European pricing and reimbursement systems means there is limited scope to facilitate significant price increases. Authorities in some European capitals—one prominent example being Denmark—are poised to embark on multiyear price cap negotiations with the innovative pharmaceutical industry, where the present inflationary climate will likely have a complicated influence on any final deal.”

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(Source: Pharmaceutical Technology, January 16^th, 2023)