Americans spend a staggering amount of money for prescription drugs, and the prices keep rising. Cases of corporate greed like the infamous Martin Shkreli, former CEO of Turing Pharmaceuticals who increased the price of the life-saving medication Daraprim by 5,000 percent, have become the public face of the entire industry. That’s unfortunate because it’s grossly unfair to paint all drug manufacturers with such a broad brush. However, the industry does need to take it upon itself to overhaul a research and development process hamstrung by clinical trials that drag on for years and cost billions of dollars.
Chris Stirling, global head of KPMG’s life sciences practice, says the business model that has powered the pharma industry over the last few decades has become outdated.