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This episode was recorded on 7 February 2024 and therefore does not reflect any events after this date.

In this week’s episode, Mary Spencer and Jacob Shah explore drug pricing and the dynamics within the pharmaceutical industry with Sreeram Ramagopalan, Principal and Market Access & Payer Evidence Lead within LCP’s Health Analytics team.

Before we interview Sreeram, we also speak to Paul Watson, Independent Trustee at Capital Cranfield, for our “Views from the Boardroom” feature. With Paul, we talk about the discussions he’s had in meetings recently with his various “hats” on, the key themes coming out of those discussions and how perspectives on working with different decision-making groups.

With Sreeram we discuss:

• How drugs are priced, the different factors that are considered and the differences in approach between the US, UK & Europe. Did you know that in the UK, the number of additional years of perfect life a drug gives is used to set its price?
• The impact on drug pricing of the Inflation Reduction Act in the US and what this might mean for incentives in the pharmaceutical industry.
• The downstream benefits of drug production (beyond the immediate improvement in quality of life of the patient) and why these should be considered more in the pricing of drugs.
• What are the opportunities for investors in this industry and how do they differ? Is it just the case that it’s just mammoth pharma companies sweeping up tiny biotech firms?
• How technology is impacting on the industry and how is technology used in the development of drugs.

What’s one thing you would like listeners to take away from this?

• Don’t read all the media thinking that drug prices are too high! Take it with a pinch of salt, think about what the incentives are, what we need to get more drugs on the market and what other benefits drugs bring.

Any recommendations for good books or podcasts:

• The Great American Drug Deal by Peter Kolchinsky

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Each LCP investment uncut podcast is for information and marketing purposes only and does not constitute any form of investment or financial advice or a financial promotion (under the Financial Services and Markets Act 2000). All views expressed by the podcast hosts and guests are purely their own opinions and do not represent those of LCP, its clients or affiliates. Our podcast listeners should always seek independent financial or legal advice before making any financial or investment decisions. Please refer to the Legal Notices section on the LCP website for further information.​