Pharma’s Dramatic Overhaul

What we asked: “Looking ahead to the next 5–10 years, what will be the key disruptors and/or what can be improved upon in the pharma industry?”

Response from: Nigel Theobald, CEO at N4 Pharma
 

The traditional pharma model is no longer fit for purpose and needs a dramatic overhaul. For years the industry has relied on the ‘throw as much paint at the wall as possible and let’s see what sticks’ approach. This has worked in the past when small molecules produced countless new drugs that made peoples’ lives better and – let’s be honest – created billions in profit for the large pharma companies.

But science has changed. We now know precise mechanisms of action that cause illness. We know which cell types are responsible for which condition, which receptors on cells help drugs get taken up, and which segment of our DNA could be used to treat the disease. We are now in a position where we can cure disease, rather than just treat the symptoms, but this gives the world and pharma companies a huge dilemma.

Pharma survives commercially on treatment, so is coming up with cures in its best interest? Small molecule drugs from big pharma players treat millions of people and become blockbusters. Today’s blockbusters still achieve the same levels of profit, but are relevant for much smaller segments of the population. Pharma companies have always said that high drug prices are necessary to allow them to invest in researching new drugs but, let’s be realistic; most pharma companies are now not doing the research. Instead, they are passing that mantle to biotechs to do the work and then snapping them up for billions so they can benefit from the huge prices these new drugs can command, thereby sustaining huge profits.

This can’t continue. It’s a simple truth that it is unsustainable to make cures for small numbers of people and price the cure at millions of pounds per treatment, as reimbursement strategies in most countries cannot afford this level of pricing. There is a danger that the lack of future reimbursement for such developments will lead to biotechs no longer being able to fund their research, and many potential treatments and cures will never reach those who need them.

So to the question; What one thing could dramatically improve the pharma industry as we know it? The answer is that the industry needs some form of government intervention, a hybrid nationalization, just like what is happening in the energy, transport and infrastructure industries in the UK. Governments need to find ways to invest directly in small biotech companies that allow new cures and treatments to be developed; they then get part of the return back so they can invest that in more discoveries. This will also allow a cap to be placed on some of the ludicrous prices being suggested by big pharma for drugs they have acquired.

There are certain principles of societies such as safety, security, and health that are paramount and require both protection and investment. The pharma industry has a responsibility in this and needs a new, stable model that focuses primarily on providing positive patient outcomes and – now – cures. It should no longer be about delivering huge profits to a small number of companies who are not actually doing the research. In my view, this will improve the industry for all in it, not just for the few.

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