Impact of Health Reform on a Pharmaceutical Company

Aaron Vandervelde contributed to the first edition of BRG Review.

Health reform is driving significant change in the healthcare industry and will continue to do so over the next five to ten years. Pharmaceutical companies in particular are experiencing the immediate impact of health reform, and there are several key components of the legislation that the pharmaceutical industry is monitoring closely. This article describes a model of the financial impact of five components of health reform on a pharmaceutical company’s product portfolio and interprets the strategic and operational implications of the model results.