GlaxoSmithKline President Jack Bailey, say the “day of unfettered pricing are long gone.”
In an interview with Bloomberg News, Bailey said drugmakers are still raising prices, but he acknowledged that pricing increases are starting to experience “deep, deep scrutiny.”
That pricing scrutiny is currently under two microscopes, the first from the US Congress, and the second from US presidential candidates who have made drug pricing a major sticking point for their campaigns.
GlaxoKlineSmith is one of the few companies that doesn’t rely on massive price increasing to increase profits and revenue. A recent Forbes tally found that GlaxoSmithKline didn’t increase revenue at all by drug price increases. By comparison, Pfizer got about one-third of its sales growth, over three years, from price increases.
Bailey during his Bloomberg interview discussed ways that drugmakers can respond as price hikes become a less reliable driver of growth. He also discussed the pros and cons of a breakup of GlaxoSmithKline.