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The contribution of the pharmaceutical sector with a strong footprint in health, society and the economy is of strategic importance

In the last two years, the industry’s contribution to pharmaceutical expenditure has exceeded that of the State

The Foundation for Economic and Industrial Research, in collaboration with the Hellenic Association of Pharmaceutical Companies, presented today at a special press conference the publication “The pharmaceutical market in Greece: Facts and Figures 2023”, as well as the main conclusions of the study “The contribution of the pharmaceutical sector to the Greek economy”.

As every year, this year, the annual report “The Pharmaceutical Market in Greece: Facts and Figures 2023” presents the main data and data for the industry, developments and trends in Greece and Europe both in the field of medicine and in the wider health ecosystem. Particular emphasis is placed on the current critical challenges facing the industry today, as well as the prospects that are formed in the wider health sector in the coming period.

The 2023 report reflects the effort to rebalance the Greek economy after a cycle of intense turbulence due to the pandemic and the energy crisis, while significant challenges remain regarding inflation, fiscal and trade balance. In addition, the report highlights the gap in the financing of pharmaceutical expenditure stemming from the period of the economic crisis and the imposition of fiscal measures.

Health and pharmaceutical expenditure are significantly affected both by the financing capacity of the public and private sectors, as well as by demographic developments and the health status of the population. Life expectancy in Greece returned in 2023 to a high of 81.6 years, following a decline due to the pandemic, approaching the EU27 average. However, in 2022, the proportion of people over 65 years of age stands at 22.9% of the total population, while by 2070 it is expected to gradually increase to 32.8%, leading to increased needs for health and pharmaceutical expenditure due to an ageing population. At the same time, births are falling, deaths are increasing, and the working population is gradually declining. In addition, in 2022, the percentage of the population aged 16 and over with a chronic health problem shows an increasing trend, reaching 25.5%, while in the age category over 65 reaches 60%.

In the area of expenditure on pharmaceutical coverage, total pharmaceutical expenditure (outpatient and hospital) for 2022 amounted to €6.2 billion, compared to €5.6 billion. in 2021, while it is estimated that in 2023 the expenditure amounted to €7.1 billion. Public expenditure for 2022 was €2.7 €2.8 billion, with an estimate of €2.8 billion. in 2023, while the pharmaceutical industry’s share in pharmaceutical expenditure increased for 2022 to €2.9 billion, and to €3.5 billion. in 2023 (estimate). In the last two years, the sector’s contribution to pharmaceutical expenditure exceeds that of the State. From 2022 onwards, the state reallocated expenditure to the three distribution channels (retail, algae and hospitals), resulting in an uneven redistribution of compulsory refunds, especially on hospital and high-cost medicines. For hospital medicines, the rate of reimbursements in 2022 amounted to 70%, while for 2023 it is estimated at 80%. Finally, patient participation increased in 2022 to €698 million. and at €734 million. in 2023.

Moreover, less pharmaceutical innovation reaches Greek patients, as of the 167 new medicines approved during the period 2019–2022, only 79 (47%) were imported in Greece, while only 43 of them are currently widely available in the Greek market.

The pharmaceutical industry is one of the most dynamic sectors of the Greek economy, with particular importance for the health system, patients and the Greek economy. Ιn the period 1998-2003 4,244 clinical (2,500 completed) studies were conducted regardless of phase or stage. The number of employees in the pharmaceutical sector (production and wholesale trade) is 32.1 thousand. in 2023. The pharmaceutical sector also plays an important role in total foreign trade, as exports of pharmaceutical products amounted to €2.8 billion in 2023 and account for 5.5% of total exports of goods, with France, Germany and the UK being the main export destinations. Correspondingly, imports make up about 5.3% of the country’s total imports in 2023.

According to IOBE‘s most recent estimates of the pharmaceutical sector’s economic footprint on the Greek economy, its total contribution in terms of GDP is estimated at €6.5 billion. (3.2% of GDP) in 2022. Thus, for every €1 of value added by companies operating in the pharmaceutical sector, a total of €2.3 is created in the Greek economy. In terms of employment, the total contribution is estimated at 118.9 thousand. jobs (or 2.9% of total employment). That is, each job in the pharmaceutical industry supports 3.4 full-time jobs in total in the economy. Finally, the impact on tax revenues from the activity of the pharmaceutical sector is estimated at approximately €1.8 billion.

The report file is available here

The presentation file is available here