Obamacare Will Bring Drug Industry $35 Billion In Profits
Photo Credit: AFP/Getty Despite expiring patents on blockbuster drugs and a wave of new regulation from the Affordable Care Act that will cost drug makers, the pharmaceutical industry will reap between “$10 billion and $35 billion in additional profits over the next decade,” a new analysis shows.
The health law, which will bring millions of uninsured Americans health benefits beginning in January 2014, will be a critical boon to pharmaceutical industry balance sheets, increasing revenue by one-third by the end of the decade, according to a new report from research and consulting firm GlobalData of London. That means the U.S. pharmaceutical industry’s market value will mushroom by 33 percent to $476 billion in 2020 from $359 billion last year…
“The (Affordable Care Act) represents a dramatic transformation in the fortunes of pharmaceutical companies in what is the world’s largest market for prescription drugs,” said Joshua Owide, head of GlobalData’s industry dynamics team in a statement to Forbes. “This reform was inevitable in the US, and while a number of the changes will negatively impact pharma’s fortunes, the overall balance could be positive, thanks to an additional 32 million formerly uninsured citizens becoming potential customers, resulting in up to $115 billion of new business over a period of 10 years.”
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