A new study by the European Federation of Pharmaceutical Industries and Associations (EFPIA) shows that the introduction of new treatments frees up more than 57,000 hospital beds and generates net savings of 9,000 million euros in just one year

consalud.es

The European Federation of Pharmaceutical Industries and Associations (EFPIA) has taken a step forward in championing the social and economic value generated by healthcare innovation with the publication of a new study. Conducted in partnership with the prestigious WifOR Institute and with the collaboration of Columbia University professor Frank R. Lichtenberg, the study reveals that the €11,670 million invested in Europe between 2014 and 2024 in new medicines has generated a return more than five times that amount.

Overall, the research confirms that this impact translates into a benefit of 66,000 million euros in social, economic and hospital savings, directly challenging the traditional view which, regrettably, reduces healthcare to a mere cost that governments are often forced to cut back on.

One of the key findings from the data analysed across 29 European countries between 2014 and 2022 is the direct impact on the sustainability of healthcare systems. More specifically, the introduction of state-of-the-art treatments not only reduced the number of years of life lost before the age of 85 by 1.83 million, but also cut the number of days spent in hospital by 20.9 million.

The introduction of state-of-the-art treatments not only reduced the number of years of life lost before the age of 85 by 1.83 million, but also cut the number of days spent in hospital by 20.9 million

A milestone which, according to the EFPIA, is equivalent to freeing up more than 57,000 beds over a full year, drastically easing the pressure on healthcare staff. Furthermore, on the economic front, the study highlights that for every euro invested in innovation, hospitals achieved 78 cents in direct savings, amounting to a net saving of 9,000 million euros before taking into account the benefits to the labour market.

This return on investment takes on an even greater significance when analysing its impact on society’s economic and productive fabric, amounting to a total of 38,000 million euros in labour productivity and 19,000 million euros in unpaid contributions.

In the same vein, the report highlights the return on investment for specific conditions, demonstrating profitability in critical areas that could serve as a basis for future strategies. For example, every euro invested in cancer treatments generated a return of 6.80 euros, whilst for medicines for diabetes and metabolic disorders the return was 4.70 euros, and for respiratory medicines it reached 3.80 euros.

Despite the wealth of evidence gathered by the research, the EFPIA regrets that Europe “remains trapped in short-term cost-containment strategies that penalise pharmaceutical spending”, they note. At present, Europe allocates barely 1 per cent of its Gross Domestic Product to pharmaceutical products, a figure that lags far behind the 2 per cent invested by the United States or the 1.8 per cent invested by China.

In this regard, the European federation explains that, as innovation is not viewed as an investment, long-term benefits – such as reduced social care costs, increased tax revenue or a fall in sickness benefits – are excluded from healthcare budgets. “This situation weakens the European ecosystem and causes critical delays in patients’ access to the latest scientific advances,” states the EFPIA.

Referring to the lack of competitiveness with its global rivals, the EFPIA points out that, over the last two decades, Europe has lost almost a quarter of its global share of investment in pharmaceutical research and development (R&D), and its participation in industry-sponsored clinical trials has fallen by almost half since 2013.

‘Many countries now recognise the importance of a healthy society as the key to a prosperous economy; Europe should follow their example.’

Against this backdrop, the federation urgently calls on Member States and the institutions of the European Union to coordinate their policies to reverse this trend, by streamlining approval and reimbursement processes and ensuring equitable and rapid access to treatments across the EU.

The organisation’s leaders have spoken out to demand a radical change in European health policy. This is the case with Stefan Oelrich, president of the EFPIA, who has warned that the decisions taken today will determine whether Europe maintains its leadership in the life sciences or whether it falls definitively behind in one of the world’s most strategic sectors.

“Downgrading the priority of healthcare budgets is a political decision that is not only a strategic mistake, but also an economically counterproductive decision that sacrifices long-term prosperity for the sake of short-term gains. Many countries now recognise the importance of a healthy society as the key to a prosperous economy; Europe should follow their example,” emphasises Nathalie Moll, Director General of the EFPIA.