News
The Pharmaceutical Industry in figures, Key data, Efpia, 200
The Pharmaceutical
Industry in Figures
Key Data • 2005 update
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THE PHARMACEUTICAL INDUSTRY: A KEY ASSET
TO SCIENTIFIC AND MEDICAL PROGRESS
T
he research-based pharmaceutical industry’s key contribution to medical progress is to turn fundamental research
findings into innovative treatments that are widely available
and accessible. Its successes in researching and developing new
medicines have helped in the fight against previously fatal diseases (such as smallpox, tuberculosis, syphilis, diphtheria and
polio) and have spurred medical progress in the treatment of
other infections (including HIV-AIDS), cancer, nervous disorders,
stomach ulcers, asthma, and hypertension, to name but a few.
Since aspirin was invented a century ago, scientific and technological breakthroughs in the pharmaceutical industry have
enabled researchers to target increasingly complex diseases ever
more closely, first by exploring the biochemistry of tissues, and
then that of individual cells. Today’s research through the mapping of the human genome will enable scientists to target the
causes of diseases rooted in man’s molecular structure.
CHRONOLOGY OF DRUG INNOVATION
Treatment for
autoimmune disease
CNS drugs
Cancer therapies
Focus on
Molecular Structure
Complexity
Beta-blockers
Anti-arthritis
Tranquilizers
Serendipitous
Observation
Antihypertensives
Antibiotics
Sulfonamides
Focus on
Tissue Biochemistry
Aspirin
1890
1900
1910
Focus on
Cell Biochemistry
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
Accumulated Knowledge of Human, Cell and Molecular Biology
Source: Boston Consulting Group
2
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THE PHARMACEUTICAL INDUSTRY : A KEY ASSET
TO THE EUROPEAN ECONOMY
B
esides driving medical progress and improving health
within Europe and worldwide, the research-based pharmaceutical industry is a key asset to the European economy. The
pharmaceutical industry is one of Europe’s best performing hightechnology sectors.
INDUSTRY (EFPIA total) (*)
1990
2000
Production
63,127
120,868
154,632 166,500 (e)
Exports
23,180
89,443
145,777 160,000 (e)
Imports
16,113
62,810
110,608 121,500 (e)
Trade balance
7,067
26,633
35,169
38,500 (e)
R&D expenditure
7,941
17,661
20,495
21,500 (e)
500,762
540,106
586,748 588,000 (e)
R&D employment (units)
76,287
87,834
99,337 100,000 (e)
Pharmaceutical market value
at ex-factory prices
43,005
86,812
Pharmaceutical market value
at retail prices
67,388
132,123
Payment for pharmaceuticals
by statutory health insurance
systems (**)
42,627
74,801
Employment (units)
2003
110,201
2004
117,000 (e)
169,677 180,000 (e)
92,403
98,500 (e)
Values in € million unless otherwise stated
(*) Excluding new EU Member States (10) and candidate countries
(**) Since 1998 data relate to ambulatory care only
Source: EFPIA member associations (official figures) – (e): EFPIA estimate
3
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MAIN TRENDS
D
ata for 2003 and preliminary figures for 2004 confirm the
vulnerability of Europe’s research-based pharmaceutical
industry. Benchmarking and performance indicators show that
the US has continued to increase its relative position as a locus
of innovation.
■
Between 1990 and 2004, R&D investment in United States
grew 4.5 times while in Europe it only grew 2.7 times.
■
Between 1993 and 2003, the US market grew by 11.9% per annum well ahead of Europe (weighted average growth of 7.3%).
Figures adjusted for infl ation show a higher differential of
market growth in relative terms, with the US market growing
nearly twice as fast as the European market.
■
According to IMS Health data, 70% of sales of new medicines
marketed since 1999 are generated on the US market, compared with 19% on the European market.
■
The fragmentation of the EU pharmaceutical market results in
a lucrative parallel trade which benefits neither social security
nor patients but deprives the industry from additional resources
to fund R&D. Parallel trade was estimated to amount to € 4,265
million in the European Union in 2003, which represents 5% of
the pharmacy market value (at ex-factory prices).
PHARMACEUTICAL R&D EXPENDITURE IN EUROPE, USA AND JAPAN
(€ MILLION, AT 2003 CONSTANT EXCHANGE RATES), 1990-2004
30,000
Europe
USA
Japan
25,000
27,095 (e)
23,930
21,500 (e)
20,495
20,000
18,889
17,661
15,000
11,423
10,499
10,000
7,941
6,747
6,015
5,000
0
3,941
4,903
5,697
n.a.
1990
1995
2000
2003
2004
(e): estimate
Source: EFPIA member associations, PhRMA, JPMA
4
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TOTAL PHARMACY MARKET (AT EX-FACTORY PRICES)
AVERAGE GROWTH RATE FOR THE PERIOD 1993-2003 (%)
15
at current prices
at constant prices (adjusted for inflation)
11.9
10
9.5
7.3
5
5.0
0
3.1
3.1
Europe
USA
Japan
Source: EFPIA member associations, PhRMA, JPMA
GEOGRAPHICAL BREAKDOWN (BY MAIN MARKETS) OF SALES OF NEW
MEDICINES LAUNCHED DURING THE PERIOD 1999-2003
70% USA
19% Europe
7%ROW
4% Japan
Note:
New medicines cover all new active ingredients marketed for the first
time on the world market during the period 1999-2003
Source: IMS Health, 2004
SHARE OF PARALLEL IMPORTS IN PHARMACY MARKET SALES (%) – 2003
20
15
10
5
12.8
0
7.0
12.2
7.6
10.1
17.1
DK
DE
NL
N
S
UK
Note: Norway: estimate
Source: EFPIA member associations
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18-05-2005 09:39:16
PHARMACEUTICAL PRODUCTION
EFPIA 2003
€ million
Austria
1,325
Belgium
4,245
Denmark
5,985
Finland
724
France
31,296
Germany
21,262
Greece
437
Ireland
14,293
Italy
17,989
Netherlands
Norway
5,811
550
Portugal
1,560
Spain
9,374
Sweden
5,758
Switzerland
12,338
United Kingdom
21,685
Total
154,632
Note:
All data based on SITC 54
Sweden: 2003 provisional data
Denmark, France, Ireland, Italy, Norway, Portugal, Spain,
Switzerland: estimate
Norway, Spain, Switzerland: veterinary products excluded
Source: EFPIA member associations (official figures)
6
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SECTOR R&D INVESTMENT AS % OF ALL SECTORS AND RESPECTIVE R&D/
SALES RATIOS FOR EACH SECTOR (EU TOP 500 COMPANIES) – 2003
FTSE Sector
R&D investment
as % of total
R&D/Sales
ratio (%)
23.8
4.6
Pharmaceuticals & Biotechnology
17.0
15.2
IT Hardware
12.4
15.6
Electronic & Electrical Equipment
Automobiles & Parts
10.3
6.5
Chemicals
7.2
4.2
Aerospace & Defence
6.8
8.0
Engineering & Machinery
4.6
2.5
Telecommunication Services
2.8
1.0
Software & Computer Services
2.6
12.8
Oil & Gas
1.9
0.3
Others (21 sectors)
10.6
1.5
Total (31 sectors)
100.0
3.2
Note:
FTSE sector: sector of economic activities according to the Financial
Times Stock Exchange index classification
Data relate to the top 500 companies with registered offices in the EU
ranked by the size of their R&D investments (over € 8.5 million)
Source: The 2004 EU industrial R&D investment scoreboard, European Commission
The pharmaceutical industry amounts to about 3.5% of the total
EU manufacturing value added and about 17% of the total EU
business R&D expenditure.
PROPORTIONS OF 4 MAJOR SECTORS’ R&D INVESTMENT IN TOTAL OF
SIMILAR-SIZE COMPANIES BY LOCATION OF HEAD OFFICE IN THE 3
MAJOR ECONOMIES (2003)
80%
70%
2.0%
60%
50%
10.5%
24.0%
12.9%
40%
30%
22.0%
25.4%
24.1%
7.9%
20%
Electronics & Electrical
Automobiles & Parts
Pharmaceuticals & Biotechnology
IT hardware
17.2%
10%
0
26.7%
12.8%
18.8%
USA-288
EU-185
Japan-153
Note:
Data relate to the top companies with registered offices in the USA (288
companies), the EU (185 companies) and Japan (153 companies), ranked
by size of their R&D investments (over € 51 million)
Source: The 2004 EU industrial R&D investment scoreboard, European Commission
7
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EMPLOYMENT IN THE PHARMACEUTICAL
INDUSTRY
EFPIA 2003
Units
Austria
9,200
Belgium
26,390
Denmark
15,131
Finland
7,032
France
98,900
Germany
119,800
Greece
11,200
Ireland
21,000
Italy
84,088
Netherlands
15,500
Norway
4,603
Portugal
10,691
Spain
39,000
Sweden
21,600
Switzerland
29,613
United Kingdom
73,000
Total
586,748
Note:
Denmark: 2000 data
Switzerland: 2001 data
Austria, Belgium, France, Greece, Ireland, Italy, Netherlands, Norway,
Sweden, United Kingdom: estimate
Source: EFPIA member associations (official figures)
8
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EMPLOYMENT IN THE PHARMACEUTICAL INDUSTRY (1985-2004)
600,000
500,000
400,000
300,000
200,000
439,090
500,762
506,742
540,106
586,748
588,000(e)
100,000
1985
1990
1995
2000
2003
2004
0
Source: EFPIA member associations (official figures) – (e): EFPIA estimate
The research-based pharmaceutical industry is one of Europe’s
major high-technology industrial employers. About 5% of the
total EU R&D personnel work in pharmaceutical research units.
EMPLOYMENT IN PHARMACEUTICAL R&D (1985-2004)
120,000
100,000
80,000
60,000
40,000
63,000
76,287
82,527
87,834
99,337
100,000(e)
20,000
1985
1990
1995
2000
2003
2004
0
Source: EFPIA member associations (official figures) – (e): EFPIA estimate
9
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PHARMACEUTICAL SALES
he world pharmaceutical market was worth an estimated €
442 billion ($ 550 billion) at ex-factory prices in 2004. The
North American market (USA & Canada) remains the world’s largest market with a 47.8% share, well ahead of Europe and Japan.
T
BREAKDOWN OF THE WORLD PHARMACEUTICAL MARKET – 2004 SALES
3.8%
7.7%
North America (USA, Canada)
11.1%
Western Europe
Japan
47.8%
Africa, Asia & Australasia (except Japan)
Latin America
29.6%
Source: IMS Health MIDAS, MAT December 2004 (total IMS audited market)
TOTAL MARKET SALES (AT EX-FACTORY PRICES) IN NEW EU MEMBER
STATES AND CANDIDATE COUNTRIES (2003 – € MILLION)
3,500
2,975
3,000
2,500
2,000
1,500
1,446
1,024
1,000
471
500
302
253
99
0
380
97
Bulgaria
Estonia
Latvia
Poland
Slovenia
Hungary
Lithuania
Slovakia
Czech
Republic
Note: Bulgaria, Latvia: pharmacy sales only
Source: IMS Health
10
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PHARMACEUTICAL MARKET VALUE
(AT EX-FACTORY PRICES)
EFPIA 2003
€ million
Austria
2,148
Belgium
3,291
Denmark
1,351
Finland
1,571
France
21,320
Germany
22,670
Greece
3,020
Ireland
1,130
Italy
14,606
Netherlands
3,477
Norway
1,197
Portugal
2,715
Spain
9,890
Sweden
2,553
Switzerland
2,549
United Kingdom
Total
16,713
110,201
Note:
Medicinal products as defined by Directive 2001/83/EEC
Denmark, Norway, Sweden: pharmaceutical market value at pharmacy
purchasing price
Greece: including parallel exports
Belgium, France, Ireland, Norway, Spain: estimate
Source: EFPIA member associations (official figures)
The figures above are for pharmaceutical sales, at ex-factory prices, through all
distribution channels (pharmacies, hospitals, dispensing doctors, supermarkets,
etc.), whether dispensed on prescription or at the patient’s request. Samples and
sales of veterinary medicines are excluded.
11
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GENERICS
T
he term ‘generics’ is widely used but its definition is not
always consistent between countries. Generics are usually produced by a manufacturer different from the inventor of
the original product and are marketed when intellectual property
protection rights are exhausted. In general the market share of
generics is significantly lower in price-controlled environments
than in non-price controlled ones.
SHARE (IN %) ACCOUNTED FOR BY GENERICS IN PHARMACY MARKET
SALES VALUE (AT EX-FACTORY PRICES), 2003
Austria
8.4
Belgium
4.5
Denmark
21.1
France
5.4
Germany
26.8
Greece
9.7
Ireland
7.1
Netherlands
21.1
Norway
12.5
Portugal
5.8
Spain
4.6
Sweden
12.1
Switzerland
4.8
United Kingdom
17.2
0
5
10
15
%
20
25
30
Note:
Austria, France, Germany, Ireland, Portugal, Spain, Sweden, U.K.: share
of generics in reimbursable pharmacy market sales
Switzerland: share of generics in total market sales
France: data relate only to those active substances listed on the official
list of medicines
Finland, Italy: data non available
Definition: ‘generic’ means a medicine based on an active substance
that is out of patent and which is marketed under a different name from
that of the original branded medicine (depending on the data source,
data might not include those generics marketed by the originator).
Source: EFPIA member associations
12
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VAT RATES APPLICABLE TO MEDICINES
The table below shows the VAT rates applied to medicines in
European countries on 1 January 2005.
VAT rates applied to medicines
Country
Standard VAT rate (%)
Prescription (%)
OTC (%)
Austria (1)
20.0
20.0
20.0
Belgium
21.0
6.0
6.0
Denmark
25.0
25.0
25.0
Finland
22.0
8.0
8.0
France (2)
19.6
2.1 – 5.5
2.1 – 5.5
Germany
16.0
16.0
16.0
Greece
18.0
8.0
8.0
Ireland (3)
21.0
0.0 – 21.0
0.0 – 21.0
Italy
20.0
10.0
10.0
Netherlands
19.0
6.0
6.0
Norway
25.0
25.0
25.0
Portugal
19.0
5.0
5.0
Spain
16.0
4.0
4.0
Sweden
25.0
0.0
25.0
7.6
2.4
2.4
17.5
0.0
17.5
Switzerland
UK (4)
(1)
(2)
(3)
(4)
Austria: 0% for reimbursed medicines (VAT refunded)
France: reimbursable medicines 2.1%; non-reimbursable medicines 5.5%
Ireland: oral medication 0%; other medication 21%
UK: 17.5% on medicines purchased by hospitals
13
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PHARMACEUTICAL EXPORTS
EFPIA 2003
€ million
Austria
3,003
Belgium
22,597
Denmark
4,634
Finland
449
France
14,529
Germany
21,035
Greece
530
Ireland
13,612
Italy
9,656
Netherlands
7,844
Norway
334
Portugal
308
Spain
3,876
Sweden
5,838
Switzerland
20,298
United Kingdom
17,234
Total
145,777
Note:
All data based on SITC 54
Exports free on board (FOB)
France, Norway, Spain, Switzerland: veterinary products excluded
Greece, Norway: provisional
Source: EFPIA member associations (official figures)
14
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PHARMACEUTICAL IMPORTS
EFPIA 2003
€ million
Austria
2,947
Belgium
23,216
Denmark
1,530
Finland
1,097
France
8,629
Germany
18,387
Greece
1,886
Ireland
2,168
Italy
Netherlands
Norway
10,679
6,645
962
Portugal
1,463
Spain
6,534
Sweden
1,972
Switzerland
10,509
United Kingdom
11,984
Total
110,608
Note:
All data based on SITC 54
Imports CIF (Cost – Insurance – Freight)
France, Norway, Spain, Switzerland: veterinary products excluded
Greece, Norway: provisional
Source: EFPIA member associations (official figures)
15
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PHARMACEUTICAL TRADE BALANCE
EFPIA 2003
€ million
Austria
56
Belgium
– 619
Denmark
3,104
Finland
– 648
France
5,900
Germany
2,648
Greece
– 1,356
Ireland
11,444
Italy
– 1,023
Netherlands
1,199
Norway
– 628
Portugal
– 1,155
Spain
– 2,658
Sweden
3,866
Switzerland
9,789
United Kingdom
5,250
Total
35,169
Note:
All data based on SITC 54
France, Norway, Spain, Switzerland: veterinary products excluded
Greece, Norway: provisional
Source: EFPIA member associations (official figures)
16
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EU TRADE BALANCE – HIGH TECHNOLOGY SECTORS (€ MILLION) – 2003
30,000
24,082
20,000
9,446
10,000
5,100
0
-10,000
-7,222
-11,756
-20,000
-30,000
-40,000
SITC 54
SITC 71
SITC 75
SITC 76
SITC 77
SITC 87
-37,994
Pharmaceutical products
Power generating machinery and equipment
Office machines and computers
Telecommunication, sound, TV, video
Electrical machinery
Professional, scientific, controlling material
24,082
9,446
-37,994
-11,756
-7,222
5,100
Source: EUROSTAT
I
n several European countries, the pharmaceutical industry
ranks among the top five net exporters in the manufacturing sector. At European level the pharmaceutical industry is the
leading high-technology sector in terms of trade surplus.
TRADE IN PHARMACEUTICALS BETWEEN EU-25, USA AND JAPAN
(€ MILLION)
19,012
12,906
USA
6,106
Japan
2,602
1,126
1,476
5,000
EU exports
10,000
EU imports
15,000
20,000
EU trade balance
Source: EUROSTAT, SITC 54
17
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PHARMACEUTICAL INDUSTRY RESEARCH &
DEVELOPMENT IN EUROPE
Pharmaceutical R&D is:
■
Lengthy: by the time a medicinal product is placed on the
market, an average of 12-13 years will have elapsed since
the synthesis of the new active substance;
■
Costly: the cost of researching and developing a new chemical or biological entity was estimated at € 870 million in
2001 (Di Masi J., Tufts University, Centre for the Study of
Drug Development, November 2001);
■
Of a high risk nature: on average, out of every 10,000 substances synthesised in laboratories, only one or two will
successfully pass all the stages to become marketable medicines.
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PHASES OF THE RESEARCH AND DEVELOPMENT PROCESS
1 medicinal product
0
5 years
10 years of R&D
10 years
15 years
20 years
Patent expiry
25 years
SPC (supplementary
protection certificate)
max.+ 5 years
2 to 3 years
of administrative procedures
18
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PHARMACEUTICAL INDUSTRY RESEARCH &
DEVELOPMENT IN EUROPE
EFPIA 2003
€ million
Austria
125
Belgium
1,358
Denmark
814
Finland
227
France
4,000
Germany
3,820
Greece
36
Ireland
102
Italy
812
Netherlands
455
Norway
125
Portugal
n.a.
Spain
610
Sweden
1,030
Switzerland
2,297
United Kingdom
4,684
Total
20,495
Note:
The figures relate to the R&D carried out in each country.
Denmark: 2000 data
Austria: 2002 data
Netherlands: 2003 preliminary data
Belgium, Denmark, France, Greece (IOBE), Ireland, Italy, Norway, Sweden
(LIF member companies), Switzerland (Interpharma members): estimate
Germany: VFA member companies
Source : EFPIA member associations (official figures)
19
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IMPORTANCE OF PHARMACEUTICAL R&D
I
n 2003 the pharmaceutical industry invested about
€ 20,500 million in R&D on the European territory.
Compared to the US, Europe is seen as a less attractive R&D investment location in terms of market conditions and incentives
for the creation of new biotech companies. The latest data available on new chemical and biological entities (period 2000-2004)
show the predominance of the United States which has now become the leading inventor of new molecules in the world.
PHARMACEUTICAL R&D EXPENDITURE IN EUROPE (€ MILLION)
25,000
20,000
17,661
19,084
20,297 20,495
21,500 (e)
15,000
11,423
10,000
7,941
4,310
5,000
2,331
0
1980 1985 1990 1995 2000 2001 2002 2003 2004
Source: EFPIA Member Associations (official figures) – (e): EFPIA estimate
NEW CHEMICAL OR BIOLOGICAL ENTITIES (1990-2004)
Europe
100
90
80
70
60
50
40
30
20
10
0
USA
Japan
Others
89
88
74
77
70
57
49
36
25
4
1990-1994
5
1995-1999
10
2000-2004
Source: SCRIP – EFPIA calculations (according to nationality of mother company)
20
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ORIGIN OF THE 23 NEW MOLECULAR (CHEMICAL AND BIOLOGICAL)
ENTITIES LAUNCHED ON THE WORLD MARKET IN 2004
10
8
6
Europe
USA
Japan
Others
9
7
4
4
3
2
0
Source: SCRIP – EFPIA calculations (according to nationality of mother company)
ESTIMATED FULL COST OF BRINGING A NEW CHEMICAL OR BIOLOGICAL
ENTITY TO MARKET (MILLION OF 2000 €)
900
800
700
600
500
400
300
200
100
0
868
344
149
1975
1987
2000
Note: data have been expressed in € million, 2000 euros
Source: J.A. DiMasi, R.W. Hansen, and H.G. Grabowski, ‘The Price of Innovation:
New Estimates of Drug Development Costs’, Journal of Health
Economics 22 (2003): 151-185
Pre-human/
Pre-clinical
Clinical trials
Phase I
Clinical trials
Phase II
Clinical trials
Phase III
Approval
Pharmacovigilance
(Phase IV)
Uncategorized
ALLOCATION OF R&D INVESTMENTS BY FUNCTION (%)
31.9
6.8 11.1
23.3
12.0
10.7 4.2
Source: PhRMA, Annual Membership Survey 2005 (percentages calculated from
2003 data)
21
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BIOPHARMACEUTICALS
A
lthough Europe’s biopharmaceutical sector is growing
steadily, it remains dominated by its American competitor.
Europe having practically missed out on the first wave of biotech
start-ups in the 1980s, most European biotech companies are
still small in size compared to their US counterparts.
BIOPHARMACEUTICALS – EUROPE VERSUS USA (2003)
Global
USA
Europe
Rest of
world
Revenues (€ million)
41,153
31,695
6,599
2,859
R&D expenditure (€ million)
16,475
11,993
3,742
740
4,020
2,868
484
668
195,820
146,100
32,470
17,250
Number of public companies (units) 611
314
96
201
Net loss (€ million)
Number of employees (units)
Source: Ernst & Young, 11th Annual European Biotechnology Report, 2004 (data
relate only to publicly traded companies)
VACCINES
E
urope is the main manufacturing location for humanuse vaccines. About 90% of the total production of the
worldwide vaccine manufacturers originated from Europe in
2002. In terms of market sales, North America is the leading
market accounting for half of the value of worldwide vaccine
sales (which totalled € 6,400 million in 2002).
WORLDWIDE MAJOR VACCINE MANUFACTURERS MARKET VALUE
(€ MILLION – 2002)
1,304.1 (20.4%)
North America
Europe
Rest of the world
1,891.0 (29.5%)
3,204.4 (50.1%)
Source: European Vaccine Manufacturers (EVM), 2004
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PAYMENT FOR PHARMACEUTICALS BY COMPULSORY HEALTH INSURANCE SYSTEMS AND
NATIONAL HEALTH SERVICES (AMBULATORY
CARE ONLY)
EFPIA 2003
€ million
Austria
1,621
Belgium
2,338
Denmark
827
Finland
917
France
18,303
Germany
24,196
Greece
1,798
Ireland
1,034
Italy
11,096
Netherlands
4,074
Norway
1,075
Portugal
1,273
Spain
8,841
Sweden
1,873
Switzerland
1,711
United Kingdom
11,426
Total
92,403
Note:
France, Greece, Ireland, Netherlands, Norway, Sweden,
United Kingdom: estimate
Source : EFPIA member associations (official figures)
23
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TOTAL SPENDING ON HEALTH CARE AS A
PERCENTAGE OF GDP AT MARKET PRICES
1960
1970
1980
1990
2000
2002
Austria
4.3
5.3
7.6
7.1
7.7
7.7
Belgium
3.4
4.0
6.4
7.4
8.8
9.1
Czech Republic
–
–
–
5.0
7.1
7.4
Denmark
–
–
9.1
8.5
8.4
8.8
Finland
3.8
5.6
6.4
7.8
6.7
7.3
France
3.8
5.4
7.1
8.6
9.3
9.7
Germany
4.8
6.2
8.7
8.5
10.6
10.9
Greece
–
6.1
6.6
7.4
9.7
9.5
Hungary
–
–
–
–
7.1
7.8
Ireland
3.7
5.1
8.4
6.1
6.4
7.3
Italy
3.6
5.1
7.0
8.0
8.1
8.5
Luxembourg
–
3.6
5.9
6.1
5.5
6.2
Netherlands
–
–
7.5
8.0
8.2
9.1
Norway
2.9
4.4
7.0
7.7
7.7
9.6
Poland
–
–
–
4.9
5.7
6.1
Portugal
–
2.6
5.6
6.2
9.2
9.3
Slovak Republic
–
–
–
–
5.5
5.7
1.5
3.6
5.4
6.7
7.5
7.6
–
6.9
9.1
8.4
8.4
9.2
Switzerland
4.9
5.4
7.3
8.3
10.4
11.2
UK
3.9
4.5
5.6
6.0
7.3
7.7
Europe
3.6
4.9
7.1
7.2
7.9
8.4
USA
5.0
6.9
8.7
11.9
13.1
14.6
Japan
3.0
4.5
6.5
5.9
7.6
7.8*
Spain
Sweden
* Data relating to year 2001
Note: Europe: non-weighted average (21 countries) – EFPIA calculations
Source: OECD Health Data 2004 (3rd edition), A Comparative Analysis of 30 countries
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THE ADDED VALUE OF MEDICINES IN HEALTHCARE
M
edicines remain the prime target of health cost containment
policies, despite the fact that on average, pharmaceutical
spending accounts for only 15% of total health expenditure in
Europe. In most European countries, healthcare policies do not
sufficiently take into consideration the therapeutic and economic
benefits of medicines. There is growing evidence at macro and
micro-economic level regarding the added value of medicines in
the health care context, not only in terms of global cost savings
but also in terms of the contribution to quality of care. Medicines
not only provide the best treatment for many diseases, but also
generate savings by substantially reducing costs in other branches
of health care and through increased productivity.
BREAKDOWN OF TOTAL HEALTH EXPENDITURE IN EUROPE – 2002
15.1%
In-patient care (hospital)
40.4%
Out-patient care
Pharmaceutical products
44.5%
Source: OECD Health Data 2004 (3rd edition), A Comparative Analysis of
30 countries – EFPIA calculations (non-weighted average)
THE ANNUAL RESULT OF INADEQUATE DIABETES TREATMENT IN GERMANY
Diabetes is one of the most common diseases of Western
civilisation, affecting more than 19 million people in the European
Union. At least thirty percent of the 4 million patients suffering
from diabetes in Germany are
44,000
not treated with medicines
at all. Medicines account for
27% of all costs in diabetes
28,000
treatment whilst hospital stays
27,000
represent almost 60%. A large
part of the hospitalisation
costs – and most other serious
illnesses – could be avoided with
8,000
6,000
proper outpatient treatment
cases of dialysis
heart amputations strokes
(especially by regulation of the
blindness patients attacks of limbs
blood sugar level).
Source: CODE 2 study (Costs of diabetes in Europe, type 2), 1999
750699 EFPIA BROCH.indd Sec125
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18-05-2005 09:39:23
EFPIA MEMBER ASSOCIATIONS
Austria
Norway
Fachverband der Chemischen
Industrie Österreichs (FCIO)
Legemiddelindustriforeningen
Norwegian Association of
Pharmaceutical Manufacturers (LMI)
Belgium
Association Générale de l’Industrie du
Médicament (pharma.be)
Denmark
Laegemiddelindustriforeningen
The Danish Association of the
Pharmaceutical Industry (Lif)
Finland
Lääketeollisuus ry
Pharma Industry Finland (PIF)
Poland
Association of the Pharmaceutical
Companies Representatives in Poland
(SPFFwP)
Portugal
Associação Portuguesa da Indústria
Farmacêutica (Apifarma)
Spain
Les Entreprises du Médicament (LEEM)
Asociación Nacional Empresarial
de la Industria Farmacéutica
(Farmaindustria)
Germany
Sweden
Verband Forschender
Arzneimittelhersteller (VFA)
Läkemedelsindustriföreningen
The Swedish Association of the
Pharmaceutical Industry (LIF)
France
Greece
Hellenic Association of
Pharmaceutical Companies (SFEE)
Ireland
Irish Pharmaceutical Healthcare
Association (IPHA)
Italy
Associazione Nazionale dell’Industria
Farmaceutica (Farmindustria)
Netherlands
Nederlandse Vereniging van
de Research-georiënteerde
Farmaceutische Industrie (Nefarma)
Switzerland
Société Suisse des Industries
Chimiques (SSIC)
Turkey
Arastirmaci Ilac Firmalari Dernegi
(AIFD)
United Kingdom
The Association of the British
Pharmaceutical Industry (ABPI)
Founder member (Germany)
Bundesverband der Pharmazeutischen
Industrie (BPI)
ASSOCIATIONS WITH LIAISON STATUS
Bulgaria: Association of the Research-based Pharmaceutical Manufacturers in
Bulgaria (ARPharM)
Baltic countries Associations: Latvia (AFL), Estonia (AIPME), Lithuania (EFA)
Cyprus: Cyprus Association of Pharmaceutical Companies (CAPC)
Czech Republic: Czech Association of the Pharmaceutical Industry (MAFS)
Hungary: Hungarian Association of Innovative Pharmaceutical Manufacturers
(AIPM)
Romania: Romanian Association of International Medicines Manufacturers (ARPIM)
Slovakia: Slovak Association of Research-based Pharmaceutical Companies (SAFS)
Slovenia: Forum of International Research and Development Pharmaceutical
Companies (EIG)
26
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MEMBER COMPANIES
FULL MEMBERS
Abbott Laboratories
Akzo Nobel Pharma
Almirall
Altana Pharma AG
Amgen
AstraZeneca
Baxter
Bayer Healthcare
Boehringer Ingelheim
Bristol Myers Squibb
Chiesi Farmaceutici
Eli Lilly & Co
Esteve
Genzyme
GlaxoSmithKline
Grünenthal
Ipsen
Johnson & Johnson
H. Lundbeck
Menarini
Merck KGaA
Merck & Co
Novartis
Novo Nordisk
Orion Pharma
Pfizer
Procter & Gamble Pharmaceuticals
Roche
Sanofi Aventis
Schering AG
Schering-Plough
Schwarz Pharma AG
Serono
Servier
Sigma-Tau
Solvay
UCB Pharma
Wyeth
United States
The Netherlands
Spain
Germany
United States
United Kingdom
United States
Germany
Germany
United States
Italy
United States
Spain
United States
United Kingdom
Germany
France
United States
Denmark
Italy
Germany
United States
Switzerland
Denmark
Finland
United States
United States
Switzerland
France
Germany
United States
Germany
Switzerland
France
Italy
Belgium
Belgium
United States
AFFILIATE MEMBERS
Bial
Bracco
Elan Corporation Plc
Grupo Ferrer
Recordati
Portugal
Italy
Ireland
Spain
Italy
27
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EFPIA (The European Federation of Pharmaceutical
Industries and Associations) represents the researchbased pharmaceutical industry operating in Europe.
Founded in 1978, its members comprise 29 national
pharmaceutical industry associations and 43 leading
pharmaceutical companies involved in the research,
development and manufacturing of medicinal products in
Europe for human use.
Its mission is to promote pharmaceutical research and
development and the best conditions for companies to bring to
market medicines that improve human health and the quality of
life around the world.
Through its membership, EFPIA represents the common
views of about 1,900 large, medium and small companies
including the entire European research-based pharmaceutical
sector whose interests also include an important part of the
generics segment. Two specialised groups have been created
within EFPIA to address specific issues relating to vaccines
(EFPIA/EVM – European Vaccines’ Manufacturers) and the
needs of biopharmaceutical companies (EFPIA/EBE – Emerging
Biopharmaceutical Enterprises).
Further details about the Federation and its activities
can be obtained from:
EFPIA
Leopold Plaza Building, Rue du Trône 108 – B-1050 Brussels – Belgium
Tel: +32.(0)2.626.25.55 – Fax: +32.(0)2.626.25.66
www.efpia.org
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