2023 The Pharmaceutical Industry in Figures

A KEY ASSET TO SCIENTIFIC AND MEDICAL PROGRESS :

Thanks to advances in science and technology, the research-based pharmaceutical industry is entering an exciting new era in medicines development.

Research methods are evolving and we have many promising prospects on the horizon, with ground- breaking cell and gene therapies being increasingly available*.

The innovative pharmaceutical industry is driven by, and drives, medical progress. It aims to turn fundamental research into innovative treatments that are widely available and accessible to patients. Already, the industry has contributed to significant improvements in patient well-being.

Today’s European citizens can expect to live up to 30 years longer than they did a century ago. Some major steps in biopharmaceutical research, complemented by many smaller steps, have allowed for reductions in mortality, for instance from HIV/AIDS-related causes and several cancers. High blood pressure and cardiovascular diseases can be controlled with antihypertensive and cholesterol-lowering medicines; knee or hip replacements prevent patients from immobility; and some cancers can be controlled – or even cured – with the help of new argeted treatments.

European citizens can expect not only to live longer, but to live better quality lives. Yet major hurdles remain, including Alzheimer’s, multiple sclerosis, many cancers, and rare diseases.

MAIN TRENDS :

The research-based pharmaceutical industry can play a critical role in restoring economic growth in Europe and ensuring future competitiveness in an advancing global economy.

In 2022 it invested an estimated €44,500 million in R&D in Europe. It directly employs some 865,000 people and generates about three times more employment indirectly – upstream and downstream – than it does directly (PwC, Economic and societal footprint of the pharmaceutical industry in Europe, June 2019).

However, the sector faces real challenges. Besides the additional regulatory hurdles and escalating R&D costs, the sector has been severely hit by the impact of fiscal austerity measures introduced by governments across much of Europe since 2010.

*There is rapid growth in the market and research environment in emerging economies such as Brazil, China and India, leading to a gradual migration of economic and research activities from Europe to these fast-growing markets.During the period 2017-2022 the Brazilian, Chinese and Indian markets grew by 13.0%, 5.3% and 11.0% respectively compared to an average market growth of 6.6% for the top 5 European Union markets and 7.1% for the US market (source: IQVIA MIDAS, May 2023)

*In 2022 North America accounted for 52.3% of world pharmaceutical sales compared with 22.4% for Europe. According to IQVIA (MIDAS May 2023), 64.4% of sales of new medicines launched during the period 2017-2022 were on the US market, compared with 16.4% on the Eu-ropean market (top 5 markets).

* The fragmentation of the EU pharmaceutical market has resulted in a lucrative parallel trade. This benefits neither social security nor patients and deprives the industry of additional resources to fund R&D. Parallel trade was estimated to amount to €6,280 million (value at ex-factory prices) in 2021.