A majority of Americans (72%) find drug costs unreasonable, and 74% believe that drug companies put profits before people. Pharmaceutical companies may therefore find it a little more difficult to justify their high prices by citing the years and funds that are used to bring new treatments to market.
9 December 2015 – TREND on Line. com
The quarterly reports are coming to an end and we could see how they have been particularly disappointing for the Healthcare sector, in addition to Hillary Clinton's famous tweet that has put some large companies in a bad light, more for the awareness that the Affordable Care Act will need a large increase in revenues, scuttled many hospital and pharmaceutical stocks, driving them to rock bottom prices.
According to an August 2015 Kaiser Health Tracking survey, a majority of Americans (72%) find drug costs unreasonable, and 74% believe that drug companies put profits before people. Pharmaceutical companies may therefore find it a little more difficult to justify their high prices by citing the years and funds that go into bringing new treatments to market and the need to invest in research and development for further treatments. Meanwhile mergers, acquisitions and deals continue to take over the industry scene. 2014 turned out to be one of the busiest years in the pharmaceutical sector, for M&A and licensing deals, the trend continued this year as well. Tax reversal deals, which had lost their lustre considering the new rules imposed by the Treasury Department, have come back to life with Pfizer making a deal with Allergan, an Irish-based company, to combine their businesses, creating the largest pharmaceutical company in the world. Abbvie's (ABBV) acquisition for $ 21B of Pharmacyclics demonstrates that high valuations are not deterring large companies from making acquisitions to grow their pipelines and product portfolios.
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