Episode 4.I - Inflation: How can it affect supply of medicines? Part I

The generic, biosimilar and value-added medicines industry provides almost 70% of dispensed medicines in Europe, yet accounts for less than 30% of pharmaceutical expenditure. This sector is at the core of expanding patient access to essential medicines and sustaining healthcare systems across Europe. Over the last decade, the prices of off-patent medicines have been driven down as governments sought ways to deal with the pressure on healthcare budgets. This was a short term response to long term cost trends caused by ageing populations and the high cost of new innovative medicines. The result is the consolidation of the market and manufacturing, and an increased risk of disruption in supply, undermining patient access to essential medicines. This situation has been exacerbated by the COVID-19 crisis and the conflict in Ukraine, which have led to an increase in inflation, now over 10%, raw material costs rising to 160%, energy costs rising by up to 300% and transportation costs that can now reach 500% at peak times. Inflation affects the off-patent medicines industry disproportionately, since off-patent medicines naturally have smaller profit margins due to competition between multiple manufacturers, and off-patent medicine price regulations which do not allow companies to adjust prices, unlike other industries where prices have risen in line with inflation and increasing costs. We need to act now to ensure the availability of medicines in all European countries. In the first half of this podcast episode, we would like to explore the challenges and impact of inflation on the off-patent pharmaceutical industry, and to address possible solutions to tackle the consequences of this inflation. Episode host: · Adrian van den Hoven (Director General, Medicines for Europe) Expert speakers: · Elisabeth Stampa (Board member at Medichem SA and President of Medicines for Europe) · Bork Bretthauer (Managing Director, ProGenerika and Member of the Executive Committee, Medicines for Europe)

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