Health care reform
Redefining biopharma innovation
Health care reform encompasses legislation that has been signed in the recent past related to the access and delivery of health care, notably the Affordable Care Act (ACA) passed in 2010, as well as broader, nonreversible trends in the market. Reform culminates into a heightened focus on reducing cost while increasing the quality of care, which will likely force a new definition of innovation to emerge for biopharma. Historically, biopharma manufacturers and regulators have treated new molecular entity (NME) approvals as “innovative.” However, new demands from health plans and health care providers to improve the quality of care without increasing overall health care costs will increase the demand for products that demonstrate improvements in health outcomes over existing treatments.