OREANDA-NEWS. Fitch Ratings says in a new special report that it does not expect a structural shift in near-term profitability in the innovative global pharmaceutical industry despite the currently intensifying focus on drug pricing in key developed markets. However, the focus on delivering value to patients and health-care systems will accelerate the industry-wide review of pricing models in favour of performance-based pay, favouring drug manufacturers that offer new treatments with clear clinical and economic benefits to patients and healthcare systems, which will ultimately differentiate business risk profiles and ratings in the sector.

In the report, Fitch outlines that innovative pharma companies are on track to introducing new agents that offer clear clinical benefits in key therapeutic areas such as oncology, diabetes, and cardiovascular. The report also analyses the latest industry response to concerns around premium pricing strategies with the introduction of performance-based, indication-based and risk-sharing pricing models, which Fitch believes will set new industry standards in balancing drug affordability for healthcare systems with offering sufficient incentives for innovation.

Fitch also discusses how the current drug pricing debate is altering the economic industry models and balance of negotiation power between pharma manufacturers and payers; examples of performance-based pay agreements that have been emerging as a result of increasing price sensitivity. The report further summarises the debates on drug pricing in the US primaries and in the UK as a result of the reform of its Cancer Drugs Fund.