Rogers Scholars Blog

Although the Food and Drug Administration (FDA) is on pace to approve more drugs in 2011 than the previous year, numerous hurdles remain that can impede a newly approved drugs path to “blockbuster” status. Obstacles, such as improper promotion and marketing and competition from both brand-name and generic drugs do and will continue to stall profits. Above all, the primary factor affecting newly approved drug sales is cost – cost of the product, payment methods and slow reimbursement. Each one of these hurdles, either working in tandem or singularly, could spell the end to “blockbuster” drugs.

Over the past decade, hospitals have faced drug shortages across a variety of diseases including cancer, cystic fibrosis and cardiac arrest. Concurrently, the pharmaceutical industry has been marked by an increase in mergers and acquisitions. Rather than large pharmaceutical firms acquiring small biotechs, the industry is seeing “Big Pharma” make a play for other large pharmaceutical firms. Recently, brand-name pharmaceutical manufacturers have turned their attention to the generics market. With this trend towards increased consolidation, consumers can expect a decrease in competition and thus, a subsequent increase in costs. Is there a link between recent merger and acquisition (M&A) activity and limited supply? Moreover, what specific role will the changing pharmaceutical landscape have on access to medicines?

A new poll shows that seniors are, by and large, confused about health reform and what it means for them.  This is bad news for proponents of reform as we head into what could be a very contentious election season.