Greek-German Cooperation for Research and Innovation Theodore Tryfon Co-CEO ELPEN Group President, PanHellenic Union Of Pharmaceutical Industries
Greek Pharmaceutical Industry and Economy 27 hi-end production facilities following GMP, GLP, ISO standards. 11,000 directly employed 60% of sector s employment with a mere 20% market share. 800 scientists in R&D 800 mn over the past decade -95% of sector s productive investments. Major investment programs in Infrastructure and Quality Control Focus in experimental research / development of incremental innovation New formulations / Re-combinations/ Drug delivery systems / Re-targeting +100 international patents Exports to 85 countries Pharmaceuticals at the 2 nd most exported products in Greece Direct effect to GDP 2.8 mn Each 1 spent in medicines produced in Greece yields 3.42 to the GDP 2
Greek Pharmaceutical Industry The Added Value perspective An absolutely feasible scenario Total effect to the GDP: 3,4-3,8 mn 60% of Greek market with locally produced medicines at affordable cost Competiveness Additional 2,000-2,500 jobs Total effect : 13,000 15,000 Increased productivity Human capital Know -How Cost containment due to the use of affordable medicines 3
Greek Pharmaceutical Industry Opportunities& Areas of Action 4
Strategy for Development Ι. Clinical Trials Existing Know-how Human capital -highly trained scientific personnel Added-value creation Participation in international research networks Creation R&D center for diagnostic technology Participation inr&d activities for new molecules aiming at the development of novel therapies Clinical Trials benefits Economic : 250,000 on average for each CT/ twofold multiplying effect to the GDP Fast access to new therapies Enhancement of the national economy through capital inflow from abroad Research know-how transfer Continuous training and development of human resources in specialized areas 5
Strategy for Development ΙΙ. A framework to stimulate R&D A coherent set of measures to enhance R&D and avoid further brain-drain Priority in access to financial tools for R&D Tax-relief framework for R&D expenditure Modernization of the regulatory framework for private investment A system of Grants for Short-Term Traineeships within the Industry Tax incentives regarding employment in R&D sector Industry -Academia Collaboration programs Spin-offs to exploit academic R&D R&D stimulation scheme benefits Improvement of competiveness / know How Increase of R&D expenses For each 1% increase in R&D expenses GDP increases by 0.07% Enhancement of employment 6
Strategy for Development ΙΙI. Extroversion - Entrepreneurship Extroversion as a strategic point to stimulate the national economy 7
Strategy for Development
The necessary framework Sustainable financing Streamlined timely payments schedule Total electronic management of the health sector Market data analysis and controls Stable, realistic of pharmaceutical policy framework o Timely licensing o Simple andtransparent pricing viable price level o Optional prescribing by brand name o Rationalization of reimbursement Suitable set of measures to drive development and attract investment o Fiscal deduction of R&D expenses o Support employment in R&D activities A framework to link research institutions with the industry Enhancement of the National Medicines Organization 9
Thank you
Greek Healthcare System Characteristics Greece Source: OECD, The Economist Greece spends 11 bn EUR a year on its public healthcare system, about 5% of GDP 11
The economic significance of pharmaceutical manufacturing Indirect effect 578 Μ Pharm. expenditure of households ( 957Μ.) Exports ( 814Μ) Total ( 1,771Μ.) Direct effect 815 Μ Induced effect 1,395 Μ Total effect 2,788 Μ Source: ΙΟΒΕ2013 For every 1 spent in Greek medicines, GDP increases by 3.42 12
Health expenditure per capita 2005-2009 vs 2009-2013 Source: OECD Health Statistics 2015, http://dx.doi.org/10.1787/health-data-en. 13