Imagine a world where the very foundation of healthcare is at risk. A recent European study has unveiled a concerning reality: falling prices, rising costs, and shortages of essential antibiotics. This is not just a distant threat; it’s a present-day challenge that demands our immediate attention.
As we observe World Antimicrobial Resistance (AMR) Awareness Week, the World Health Organization’s report paints a grim picture. One in six bacterial infections globally is now resistant to antibiotics, and if we don’t act, AMR could lead to 10 million deaths annually by 2050, with a staggering $1 trillion in healthcare costs. These numbers are a stark reminder of the urgency to act now.
Ensuring access to essential medicines, especially off-patent antibiotics, is crucial. Viatris Inc., a global healthcare leader, and Medicines for Europe, the voice of the European generic and biosimilar industries, have joined forces to present an independent study by New Angle. This study delves into the reasons behind the shortages of off-patent medicines, with a special focus on antibiotics.
The study, titled “Securing Access, Improving Lives: Strengthening Patients’ Access to Off-Patent Medicines in Europe,” calls for reforms to national pricing and procurement systems. It’s a wake-up call to secure patient access to these vital medications.
Here are the key findings:
- Between 2020 and 2024, the average price of the top 10 off-patent antibiotics dropped by 10.4%, but production costs and inflation soared. Industrial producer costs increased by 31.6%, labor costs by 25.7%, and energy prices skyrocketed by 88% for gas and 62% for electricity.
- Despite a 18.9% price drop, Amoxicillin, a commonly used antibiotic, was among the most affected by shortages.
- A total of 240 antibiotic medicines were withdrawn from the market, and 385 shortages were reported across 16 European countries during the study period.
These findings highlight a critical issue: the current pricing and procurement rules are leading to falling prices, but the costs of production are rising sharply. This threatens the economic viability and availability of these essential medicines.
To secure the future of antibiotic availability and other off-patent medicines in Europe, urgent policy reforms are needed. Here are some proposed actions:
- Price indexation to inflation and production costs to ensure manufacturers can continue producing these critical medicines.
- Minimum price policies to prevent short-term savings from limiting availability in the mid-term.
- Tiered pricing models that allow prices to adjust based on market competition, supporting a healthy multi-supplier environment.
- Procurement reform to promote multi-winner tenders and consider non-price criteria like supply reliability and environmental standards.
But here’s where it gets controversial: Should we prioritize short-term savings or long-term availability? Are our current pricing policies doing more harm than good? These are questions that policymakers, healthcare leaders, and industry partners must grapple with.
Viatris and Medicines for Europe urge action based on the study’s evidence. They call for the development of sustainable systems that guarantee access to essential antibiotics. The time to act is now, and the consequences of inaction are dire.
Read the full study on the Viatris website or Medicines for Europe’s platform to delve deeper into this critical issue. Together, we can protect patient access and ensure a healthier future for all.