Survey: Regulatory Pressures Top Concern for Pharmaceutical Companies
A recent report has found more than 60% of pharmaceutical executives perceive regulatory and legislative issues to be "the most significant barrier to their company's growth" in 2013.
The May 2012 study, conducted by the tax and advisory firm KPMG LLP, looked at 107 senior pharmaceutical executives, with 45% of respondents working at companies with annual revenues above $10 billion.
In addition to their concern about regulatory and legislative pressures, pharmaceutical executives identified increasing regulation and enforcement as a top concern in the coming year, dethroning the previous year's concerns about patent expirations.
"Pharmaceutical executives are struggling to grow revenue in the face of pricing and regulatory pressures, including fines, taxation, fees and reporting requirements," said David Blumberg, KPMG partner and pharmaceutical advisory sector leader. There is "no clear single path forward," added Blumberg.
The lack of a path forward contributed heavily to survey respondents indicating they would be devoting "the most time and energy in the next two years navigating significant changes in the regulatory environment." The answer took the top spot, beating out companies' interest in promoting organic growth and developing new products.
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