In the last year there was someone posting here about how Obamacare was going to effect us. He was widely derided and basically laughed off. All that now seems prophetic. Were they right all along?
While Obamacare did promise millions of new patients to pharma companies....and that did not happen, combined with $100's Millions in new Obamacare pharma taxes added to the continuing failure of Novartis to get pipeline drugs to market and loss of patent on blockbuster drugs with the mismanagement of inept leaders, all added to the problem.
ACA has nothing to do with this. The face of pharma has been changing for the last 10 years. The 'flood the docs' model (90's) of more reps = more sales was soon abandoned when it didn't work as the consultants projected. The competition of 'me too' drugs and loss of patents only made it more difficult to maintain the profit expectations of shareholders. It is easy to blame ACA (and ACA may have a considerable effect in the future as it's true impact is realized) - but the truth is leadership followed the guidance of a bunch of pencil pushers and newly minted MBA's because they couldn't/wouldn't make decisions about how the pharma world worked on their own. Failure to promote from within - promoting quality seasoned professionals who understood the business - led to the vaccuum of doom....
100% correct. There are the one-message crowd (fat boy who blames the heartbreak of psoriasis on Obama) but analysis of the healthcare system in the last 30 years demonstrates the rise and fall of the gravy days of pharmaceutical reps. It is more the nature of the business, the change in the physician population--no longer doctors practicing until they die--who do not need the social interaction of a rep visit, and the sophistication of the patient base. The business will continue to evolve, and the only survivors will be those who can change with the times
I think the system to do this is call SKYNET, it's made by Miles Dyson. It will go online later this year.
The changes are due to Reinhardt, not Obamacare. Back when he was head of Pharma, he kept tightening the screws all the time.
Then why did Novartis spend 100's of millions lobbying for their changes in Obamacare? Why did they and will they spend 10's of millions paying consultants on how to restructure in preparation for Obamacare and now how to do so afterwards? I don't get it?
