Where Pharma Firms Still Have Pricing Power
Investors are underestimating the strong pricing environment for drugs that target unmet medical needs, like pain management.
Investors are underestimating the strong pricing environment for drugs that target unmet medical needs, like pain management.
Damien Conover: When we think about the healthcare landscape, there is a lot of concern right now about pricing power of drugs within the United States. And when we look at the pricing power for these drugs, it's areas of unmet medical need where you can really retain a strong pricing environment. And generally speaking, when we think about areas of unmet medical need, we think about cancer, we think about immunology, but there's also an area of pain development drugs which really addresses an area of unmet medical need. There hasn't been a lot of development there in the last decade. We're really left with old drugs, opioids, NSAIDs that cause a lot of side effects.
What's really interesting in the environment right now is a new class of drugs called nerve growth factor drugs, and the leading drugs in this space are coming out of the laboratories of Eli Lilly, Pfizer, and Regeneron, all three of which companies we think are undervalued and underappreciated by the investment community. And as these drugs come to the FDA and the EMA for approval, we think the efficacy will be very, very strong, and we believe the side effects will not be as bad as some of the older drugs currently on the market. So that gives us confidence in this next class of drugs which really could develop into $5 billion annually. So, huge potential here. Really those three companies, we think, have these drugs well-positioned for unmet medical areas of need and really are emblematic of their pipelines.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.