Still, pharmaceutical companies targeting the global market said they cannot rely solely on recruiting patients in China. Even if registrations become faster in the region, regulators may expect the US and Europe to be included in Phase 3 exams. This means that companies need to balance speed with representative local data. Additionally, companies must also be prepared to navigate future US restrictions including drugs approved by Chinese biotechnology companies or Chinese clinical trial data.
4. Drug pricing pressures and alternative models
The debate on drug pricing is increasingly shaped by policy proposals like the Most Favoured Countries (MFN). Companies argue that Europe, where prices are lowest, is not a favorable benchmark. Because while reimbursements take years there, high clawback rates and forced rebates act as income taxes.
If drugmakers stop offering lower prices in Europe to avoid lowering US benchmarks, it may not mean that Europe will pay more drugs. Instead, the overall pot of European funding could remain fixed, meaning fewer patients will be refunded at higher prices, one executive said. The company leader also shared that raising prices for existing European products could be premature, but they are considering the high prices for new launches. Another possible by-product of MFN is a more split-right transaction, which could allow companies to license EU or emerging market rights to partners, sequestering US pricing from downward pressure.
Drugmakers said they are investigating the Direct Consumer (DTC) model as a lever to reduce costs while increasing access. This approach is most viable with drugs that include HIV and diabetes, oral GLP-1, respiratory or inhaled medications compared to high-cost branded therapies that require complex funding. The DTC model also fits into cash pay channels and options to ensure patients have lower prices by committing to longer treatment periods. Employer coverage adds another layer of support by limiting patient out-of-pocket costs.
5. M&A and Healthcare Partnership
Mergers, acquisitions and partnerships remain key strategies for healthcare companies facing the loss of exclusivity as drugs lose patent protection. To maintain growth, companies are actively seeking to acquire assets that can advance into commercialization from the early stages and, in some cases, build licensing businesses.
While oncology and immunology remain hot fields, executives highlighted neuroscience as the second largest therapeutic area, spanning psychiatry, Parkinson's disease, neurodegeneration and Alzheimer's disease. Demand and innovation are accelerating.
Beyond the drug pipeline, hospitals and health systems M&A are also restructuring access and diagnosis. The hospital is considering obtaining a lab to integrate to gain access to patients and perform diagnostic tests in the doctor's office.
Meeting executives also spoke about their interest in specialized testing providers, as they can license their own diagnostic tests to labs and health systems. Still, some executives warned that some private companies remained high in ratings.
