Takeda says drugmakers could cut prices in face of global crises

'Energy and food costs, together with supply chain constraints, have led to significantly higher inflation,' says Takeda CEO. Photograph: iStockThe head of Asia’s largest pharmaceutical company said the risk of a global recession, along with the impact of Covid-19 and the war in Ukraine, could force the industry to cut drug prices.

“This perfect storm scenario will have an impact on investment in innovation and could accelerate downward pressure on drug prices.” Mr Weber said the crisis in Ukraine was a reminder that companies operated in a “very uncertain and politically divided” world and Takeda is “scenario planning” to ensure it can react to any situation.

In the US, pharmaceutical companies often offer rebates and discounts on products that can cut the final cost to patients. Evan Seigerman, biopharma analyst at BMO Capital Markets, said the drop in list prices in markets outside the US is not surprising because most governments negotiate procurement directly with industry and so can exert downward pressure on prices.

The Biden administration’s efforts to pass drug pricing reforms, which include allowing the US government’s health insurance scheme Medicare to negotiate some drug prices, have foundered in Congress. However, this week senator Joe Manchin, a Democratic senator who helped block the proposed reforms last year, suggested that drug price reforms could be legislated later this year as part of a broader legislative package.

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