Need for concrete measures at national level to help stimulate innovation and ensure access for all European patients to modern medicines

10.10.2012, Brussels: EFPIA welcomes today’s Commission Communication on industrial policy as an important step to seeking to secure the competitiveness of the EU pharmaceutical industry and protect access to medicines for all of Europe’s citizens. 

Sir Andrew Witty, EFPIA President, said “Innovation is vital to any successful long-term economic strategy. Pharmaceutical innovation can be one of the key platforms of a growth programme for Europe.  The pharmaceuticals sector is by far EU’s most R&D intensive industry. Europe is a world leader in this area, but other locations, such as the US and certain Asian countries, present increasingly strong competition for manufacturing and R&D activities.”

The best way to support innovation is to use it and reward it by paying fair prices for added value. The research-based pharmaceutical industry has significant concerns about pharmaceutical pricing and reimbursement policies that are being implemented across the EU. Drastic reductions in national budgets, the lack of coherent policy approach and the succession of short-term cost containment measures with extra-territorial impacts are driving down the competitiveness of the research-based pharmaceutical industry. The legitimate concern to limit public expenditure in these difficult times should not lead to measures that undermine both patient benefit and the status of Europe as a home for innovation. It is ironic that many EU Member States use various incentives to attract R&D and manufacturing investment, but then create hurdles and market distortions that prevent innovative medicines from reaching patients.

A key concern is the cross-border impact of measures taken. The practice of referral to other countries when setting prices for medicines, results in inefficiencies and sometimes in limited supplies. Where the industry has agreed to temporary price cuts to bridge funding gaps (e.g. in Greece or Portugal) other countries not subject to the same financial pressure automatically lower their prices.  Some 26 countries inside and outside Europe reference their medicines prices to Greece in some way.  The impact of a price cut in Greece therefore resonates across the EU and globally – the implications for the R&D-based industry are clear.  

Sir Andrew continued “In these extraordinary times for Europe, its economies, and its citizens, business as usual - cost-containment policies that create market distortions - will drive investment elsewhere and consign Europe to a gradual decline, to the second rank of the new global order. Europe needs a more vigorous industrial and innovation policy. The Commission’s proposal can lead to enhanced coordination, and deliver concrete measures at national level to help to stimulate and deploy innovation in Europe. We need to solve difficult questions in a way which is economically viable, maximises the possibility for patients to get access to the medicine from which they could benefit, and balances the need for value for money for the payer with the need for innovation incentive for the supplier.  The industry will play a full part in addressing these goals”.

Contact

Richard Bergström, Tel: (+32) 2 626 25 55
E-mail: newsroom@efpia.org 

Useful links
www.efpia.eu

About EFPIA:

EFPIA represents the pharmaceutical industry operating in Europe. Through its direct membership of 33 national associations and 37 leading pharmaceutical companies, EFPIA provides the voice of 1,900 companies committed to researching, developing and bringing new medicines to improve health and quality of life around the world. The pharmaceutical industry invests 27.5 billion on research and development per year in Europe and directly employs 660,000 people including 116,000 in R&D units in Europe.

EFPIA members are committed to delivering innovative medicines to address unmet needs of patients and reducing the burden of chronic diseases for Europe’s ageing population. EFPIA believes in close cooperation with its stakeholders to help create sustainable healthcare   systems and to develop prompt responses to health threats in Europe.

Media Contact:

Nicholas Elles
Communications Manager
EFPIA 
Rue du Trone, 108
1050 Brussels
TEL:  +32 (0)2 626 24 79
Email : communications@efpia.eu