Company news: Capgemini, HealthPrize and Warc International

Share this article:

It's well-known how non-adherence due to prescriptions never filled and medications not taken often enough erodes pharma's profit. A new study suggests these problems are much costlier to the drug industry than previously thought. Each year, $188 billion—an amount equal to 59% of their 2011 revenue—is lost to the US pharma industry as a result of non-adherence to medications for chronic disease, according to the study, conducted by Capgemini Consulting and HealthPrize Technologies. Extrapolated to a global level, the revenue shortfall from non-adherence reaches $564 billion, the firms said. That's much higher than an oft-cited 2004 analysis, which puts the amount of global revenue left on the table at $30 billion. An Express Scripts 2010 study estimated the loss to US pharma at $106 billion each year. The latest study is based on review and analysis of modern claims-based adherence literature and data.

Global ad spend is expected to rise by 4.3% this year and by 4.0% next year, according to the Warc International Ad Forecast, but only by +1.8% and +1.6%, respectively, when accounting for inflation. Warc's projection, issued fours times a year, is based on 12 major markets. Russia (+14.6%) and China (+12.5%) are predicted to be the fastest-growing ad markets in 2013, while the US—the world's largest ad market—is expected to grow at a slower rate of +2.5% next year, without the benefit of the election and Olympic spend, following predicted growth of +4.1% this year. Warc said it expects limited growth in the eurozone countries and Japan due to recession fears. The overall 2012/2013 rates are lower—by one-half and one-and-a-half points, respectively—than Warc forecasted in its June report, a downgrade which the intelligence firm attributed to “continued uncertainty about the global economy and future business conditions.”

Share this article:

Next Article in Business Briefs

Email Newsletters

More in Business Briefs

Avastin pockets another Priority Review label

It's the second for this cancer drug in two weeks.

Court invalidates some healthcare subsidies

The lawsuit has been wending its way through the courts for a while, and, although it is being deliberated in several other venues, the decision is part of a legal dispute that puts patients in the 36 states offering federal exchanges in limbo.

FDA generic division overhaul kicks in

The Food and Drug Administration has been intent on elevating and reorganizing its office of Generic Drugs since 2012.