Statement in response to discussion on price at the European Health Forum
02.10.15
The reality is that medicines are not the main driver of rising healthcare costs. In fact, spending on medicines has risen far slower than overall healthcare spending. As a percentage of GDP, spending on medicines has actually fallen in Europe over the last decade. Averaging around 16.9% total spending on healthcare, the medicines bill in Europe is currently under control and does not pose a threat to the sustainability of healthcare financing in Europe.
These facts should be coupled to the pharmaceutical industry continuing to drive a positive trade balance for Europe, employing over 700,000 employees across the EU and spending more of its revenue on research and development than any other industry.
Somehow the debate often fails to recognise that innovative medicines have transformed the way health systems can treat numerous diseases and how these diseases impact on the lives of patients, their families and carers across Europe. There are numerous examples; over the past years, the death rate from HIV/AIDS decreased 83 percent; the cancer death rate has fallen by 20 percent and the 5-year survival rate climbed to 68 percent; and new hepatitis C therapies have cure rates of up to 90 percent.
All too often the focus of the debate, fuelled by sections of the media, has centered on the price of individual medicines. However, we know overall medicine spending has fallen as a percentage of GDP. Particularly over the past 6-7 years, cost containment efforts have primarily focused on medicines rather than other healthcare segments or interventions. This reflects the pressure to make short-term savings at the expense of structural reforms or long term outcomes driven, sustainable healthcare delivery. Thought leaders recognise that patients and healthcare systems would be better served by a more holistic dialogue, encompassing the management of healthcare budgets and managing the introduction of new medicines. Europe needs outcomes driven, sustainable models of healthcare delivery that focus on improving patients’ health in a holistic and evidence-based way. We need systems that allocate resources towards those interventions that deliver the best possible outcomes and away from those that don’t, - these systems improve quality. This is often less expensive in the long-term and thus more sustainable than the current transaction-oriented approach to healthcare.
Richard Bergström, Director General of EFPIA said: “We welcome the debate on access to medicines but it is a debate that has to go beyond simply the cost of individual medicines. Contrary to the perception of some, our aim is not to promote spending on health or medicines at all costs, but to work with healthcare systems to ensure that spending on medicines, spending on healthcare as whole is informed by patient outcomes and based on an understanding of the broader societal, economic and health benefits of biomedical research and innovative medicines. Medicines are part of the solution in addressing the very real challenges faced by European healthcare systems. EFPIA member companies have already shown in practice that they are open to new and pragmatic approaches and Industry is keen to be part of the debate.”