Focus Europe

April 12th - 2017 “Healthcare spending regulation needs to be made on a rational basis”

Valerie Paris, Senior Health Policy analyst, OECD (Organisation for Economic Co-operation and Development)

Nextep: In which context, did OECD provide the “New Health technologies: managing access value and sustainability” report and tackle the question of drug costs?

V. Paris: Our intention was not to work mainly on prices though we were under the impression that innovation always comes at growing costs, whereas it does not in other sectors. That is why a whole part of the report analyses the contributions of new technologies to costs and benefits.
Studies show an increase between 25 and 50% regarding expenses in the last few years but it is difficult to identify precisely what is directly linked to innovation, and that is even more true when it comes to benefits, because they are very often not directly related to the expenses, which is why we had to make some hypotheses. That being said it is quite striking to see the growing trend of expenses per life year earned, not forgetting that they did not take into account the quality of life.

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Company News

Interview of Dominique AMORY - Partner at Nextep - (Pharmaceutiques - july 2016)

Free pricing for exported drugs: a long-term battle which requires patience and determination

Due to the sacrosanct principle of free movement of goods and services within the EU, the wholesalers are taking advantage of price differentials between member states to parallel trade medicines, capturing undue margins to the detriment of drug manufacturers.

As the pharmaceutical industry is not operating in a free price market, price regulation in one country should apply only to products consumed within the same health care system.
There is no reason that the French price will be used for product intended for export.

This situation is fully unfair for... 

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International Pharma Express n°74 - January 2017

OECD: Comments regarding New Health Technologies report focused on prices
OECD released its New Health Technologies: Managing Access, Value and sustainability report on January 16th, which states several recommendations regarding medical innovation as well as the basis of its opinion regarding drug pricing:
  • Assist R&D investments and prepare the upcoming of innovations, especially through public-private partnerships
  • Adapt the regulation mechanisms (medical devices, new type of products, e-health, information to patients)
  • Develop HTA tools to encourage value-for-money approach, especially regarding cancer drugs and rare diseases
  • Use the potential of health data
Despite this work was larger than the price issue, it was mainly expected regarding this topic. Indeed it provides with the preliminary positions of the OECD, which will constitute the basis of the deeper analysis to be realized before the end of the year.
EFPIA: Satisfaction regarding the OECD report “Health at a Glance: Europe 2016”
EFPIA shows its agreement concerning the objective of integrating a more comprehensive analysis of health and health system into EU policies. The trade-association believes that both the European Commission and the OECD have a significant role in the development of standardized data collection’s in terms of health outcomes in Europe.   The report underlines that country chronic disease management can have a direct and significant impact on employment and widely on societal growth.
Besides, with an ageing population, it is necessary to invest in disease prevention and health promotion as it is a cost-effective solution to combat chronic diseases. EFPIA highlighted the fact that digitization of healthcare can be a method to revolutionize disease prevention.
Furthermore, there are health outcomes discrepancies among countries that can be explained by present differences in care pathways and in the way data are collected .
As per EFPIA, the improvement of data’s quality would underline how resources are allocated in healthcare and make possible a “more evidence-based discussion” about healthcare budgets.

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