Investment in Health is investment in wealth: the positive dimension of healthcare K. Panagoulias, Al.President SFEE

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1 Investment in Health is investment in wealth: the positive dimension of healthcare K. Panagoulias, Al.President SFEE Healthworld Conference, October 2017

2 % Healthcare as % of GDP 14,00% 12,00% 10,00% 11,0% 11,3% 9,5% 9,6% 12,2% 12,1% 12,1% 12,2% 12,2% 12,3% 10,4% 10,0% 9,8% 9,8% 9,8% 9,9% 8,00% 6,00% 4,00% 2,00% 0,00% WORLD OECD 2 Source: WHO

3 Revenue in billion U.S. dollars Revenue of the worldwide pharmaceutical market from 2001 to 2015 (in billion U.S. dollars) , ,4 964,4 993, , ,6 888, ,9 601,2 648, ,2 427, Source: Statista 2017

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6 The Value of medicines Patients live longer, healthier and more productive lives The biopharmaceutical industry generates essential economic value in terms of job creation, R&D investment, and medications that improve patient productivity Patients Economy Healthcare Systems Society Innovative medicines can put healthcare systems on a more sustainable path by reducing costs in other parts of the healthcare system such as hospitalizations Society benefits from health and wellness as individuals are able to continue being productive members of the community

7 Why Invest in Health? Health Improves life styles Reduces job-related risks Buys more education and other human capital-related services Improves political stability, investment climate, and productivity Reduces medical spending Increases labor supply and female labor force participation Increases saving Increase in the years of healthy life expectancy Income Wealth Growth 7 Source: Salehi, 2004

8 Share of Mortality per EU-25 (2004) Industry development and subsequent approvals have historically been Targeting major unmet medical need There is a strong association between industry development and priority disease areas with the largest impact on 50% society 45% 40% 35% Size of Ball Indicates Share of Mortality per in EU-25 Cardiovascular diseases (e.g. CHF, stroke, hypertension) 30% Malignant neoplasms 25% 20% 15% Optimal Value for Society 10% 5% Digestive diseases Respiratory diseases Perinatal conditions Skin diseases Neuropsychiatric conditions Respiratory infections Diabetes mellitus Genitourinary diseases Blood and endocrine Musculoskeletal diseases Infectious and parasitic disorders diseases 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Congenital anomalies Share of EMA Approvals Source: Health Advances analysis; Catala-Lopez 2010 Does the development of new medicinal products in the European Union address global and regional health concerns? Pop Health Met.

9 Annual Growth in Pharmaceutical and Total Health Expenditure per Capita Total healthcare expenditure has seen constant growth while Spending on medicines has decreased in recent years Pharmaceutical expenditure has substantially decreased since 2010 while total healthcare expenditure has continued to grow across developed markets 8,0% 6,0% Pharmaceutical expenditure growth less than total health expenditure growth 4,0% 2,0% 0,0% -2,0% -4,0% Total Health Note: Average annual growth in pharmaceutical and total health expenditure per capita, in real terms, average across OECD countries, 1990 to 2013 (or nearest year). Countries include Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States. Source: EFPIA 2015, H&G evidence compendium

10 Total healthcare expenditure has seen constant growth while Spending on medicines has decreased by 1.8% per annum in recent years Growth rates of health spending for selected functions per capita, OECD average, Source: OECD Health at a Glance (2015)

11 Pressure on healthcare system resources would increase further Without new medicines In the UK, a treatment delaying the onset of dementia by 5 years would result in * 2 : 666,000 fewer people with dementia 566,000 fewer informal carers required 21.2 billion (36%) reduction in the cost of dementia 22 billion savings in Germany by 2040 from the development of new medicine that halts the progression of Parkinson s Disease (PD) billion savings if medicine slows progression by 20% 2 11 * Study duration and savings modeled through 2050 for an intervention that would delay the onset of dementia by 5 years and would become available in 2020.Source: Health Advances analysis; 1 PhRMA 2016 Prescription Medicines: Costs in Context; 2 Alzheimer s Research UK 2014 Defeat dementia policy report; 3 Johnson 2012 Economic value of slowing Parkinson s Disease in Germany: Modeling progression through Hoehn and Yahr Stages ISPOR 15 th Annual European Congress.

12 Vision & growth aspiration of the Pharmaceutical sector in Greece Make Greece a hub for Clinical Research with a view to increasing annual expenditure on Clinical Research from 84mil to 250mil Double employment in the pharmaceutical sector Increase R&D expenditure above 10% of the turnover of the industry in line with the target of Europe 2020 (1.5%GDP for R&D) Double production in Greek factories Improve the competitiveness of Greek pharmaceuticals and increasing exports Link academic /research centers with industry Promote Greece as a major destination for medical tourism and for big medical congress (>10,000 participants) 12

13 Greece lacks in R&D tax incentives vs other EU countries, Still room for investment 300 R&D Super Deduction Lithuania Turkey Croatia United Kingdom Czech Republic Hungary Netherlands Greece 13

14 14 Thank you!