According to the 2019 MM&M Deloitte Consulting Healthcare Marketers Trend Report, marketing budgets increased 26% when compared to the previous fiscal year. The mean budget jumped from $8.3 million to $10.5 million, and 92% of respondents reported a year-over-year increase! This growth has been fueled by a record number of approvals of new treatments, as well as the Trump Administration’s Laissez-faire approach to the industry. This recent growth, however, faces numerous challenges in the near-future. The political climate present when such issues are addressed will strongly influence their outcome, and experts have agreed political action is inevitable.
Joe Plevelich, a commercial operations executive for a pharmaceutical company commented:
“If you look at some of the leading potential contenders for the presidency and some of the platforms they are trying to establish, [many] are talking about better controls and transparencies around pharma pricing and profits. I think there are definitely changes afoot. Whoever is going to be in power is going to have an impact on pharma pricing and our recent ability to continue to raise pricing on a whim.”
As we embark upon an active and critical time in healthcare regulation, development, and modernization, both democrats and republicans agree pharma is an industry worthy of attention.
The following have been identified as key discussions to watch as we approach 2020:
- Include a reduction of elimination of tax deduction for marketing expenses (expected this year)
- Requiring list prices of drugs to be included on TV advertisements
- Price caps on drugs (Congress has already opened hearing on rising drug prices)
- Investigations into sales and marketing practices
Why It’s Hot
The outcomes of these and similar healthcare regulatory topics will strongly impact pharma marketing budgets, and will determine if they will remain as fruitful as they are today. Many are concerned an unfavorable decision in any of these issues, could lead to significant change. Pharma marketers should remained tuned into the latest developments in these and other healthcare related issues, as well as the 2020 presidential election.