Market Instability Calls for Biopharma Leaders

Uncertainty Looms Over Biopharma Industry Amid Potential Policy Changes

Industry analysts have noted a period of uncertainty in clinical research and development due to potential policy changes such as tariffs, coupled with various market forces. These developments, discussed at Asembia’s AXS25 Summit in Las Vegas, are causing ripples in various sectors of medicine and finance.

Key Trends in the Pharma Industry

Several trends are gaining attention, according to the industry watchdogs. Notably, glucagon-like peptide-1 inhibitors (GLP-1s) are expected to evolve into a $100 billion market across all indications. Additionally, there is a potential shift in policy that could favor the development of small molecules, thereby revitalizing the industry’s focus on drugs and treatments for large populations.

IQVIA’s vice president of thought leadership and innovation, Luke Greenwalt, MBA, mentioned that the American biopharma industry is keeping a close eye on these trends. Mr. Greenwalt’s insights are derived from IQVIA market research, which he stated to be “based on reliable and vetted third-party sources and data”. He emphasized the impactful role the industry has in patient care, especially as these trends unfold.

The Effect of Tariffs and the Rise of GLP-1s

Mr. Greenwalt, a 25-year industry veteran and economist, notes that tariffs are a major topic of discussion currently. The proposed changes have led to a prompt response from pharma manufacturers, with commitments to boost production within the United States. By the time of the Asembia meeting, these manufacturers had pledged a total of $167 billion in new onshore production commitments, a figure that has grown since.

While this may eventually benefit U.S. workers, Mr. Greenwalt notes that it will take time to construct new production facilities or modify existing ones, and to recruit and train the necessary personnel. Meanwhile, the biopharma industry continues to assess the potential impact of tariffs on the cost of imported goods used in drug production.

The system costs of GLP-1s, which are increasing rapidly, are another area to watch. Mr. Greenwalt noted that these have seen some of the fastest product launches witnessed by the industry.

Impact on Manufacturing and Pricing

Shiven Bhardwaj, PharmD, MAS, BCGP, a pharmacy policy and business advisor for healthcare policy consulting firm Healthsperien, noted that increased tariffs are likely to influence margins for dispensing generic drugs imported into the United States. He mentioned that generic manufacturers will have no option but to pass the cost of tariffs along to wholesalers or retail pharmacies, as they operate on tight margins.

Dr. Bhardwaj stressed that reshoring manufacturing in the United States is a slow process, despite the likely positive outcome. Building cell or protein lines to develop biologics or biosimilars, for instance, is a time-consuming process. He said, “It’s not just the scaling of the facilities; it’s finding the talent too. None of that is very quick.”

As the industry navigates these changes and uncertainties, it awaits concrete information and policy decisions, hoping for the long-term health of patients and the biopharma industry.

The sources reported no relevant financial disclosures beyond their stated employment.