Healthcare Cash Crisis Will Hit Drugmakers – Report

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LONDON -(Dow Jones)- A looming cash crisis in global healthcare systems threatens to seriously disrupt drug companies’ research into new drugs, pipelines, and pricing, a new report will warn this month.

At the end of May, global management consultancy AT Kearney is to publish a paper, Healthcare Out Of Balance, warning healthcare systems in developed nations, including the U.S., U.K. and Europe, are simply not sustainable as it is becoming increasingly hard to fund expensive treatments for aging populations.

Link to article:


This article is another example of the real challenges ahead for old time pharma. 

There are a small number of future leaning institutional investors around the world that are seriously examining the value propositions of their positions in the pharma sector.  Work has been going on for several years now to better understand the future development and opportunities that pharma can embrace.  The sector’s poor performance in emerging markets certainly will not continue, as is noted in the article.  (And as we’re written here for some time now.)

Look to innovators like Wim Leereveld of the Access to Medicines Index as one example of revaluing, or more correctly, defining an additional valuation process.  When Wim presented the Index at a WHO pharma conference in Geneva in 2005 the idea of the index was certainly taken by the majority of attendees with some level of surprise……..3 years later the index is now out………….HK

The index is online at:

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On June 26, 2008

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