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European Study Reveals Decreasing Prices and Increasing Costs for Essential Medicines

A recent independent study presented by Viatris during the World AMR Awareness Week underscores the pressing issues facing the pharmaceutical sector. As countries grapple with rising costs and declining prices, the need for urgent policy reforms to ensure access to essential medicines, especially antibiotics, has never been more critical.

The Current State of Antibiotic Access

The report highlights that one in six bacterial infections globally is now resistant to antibiotics, raising alarms within the healthcare community. Experts predict that antimicrobial resistance (AMR) could lead to up to 10 million deaths annually by 2050 and $1 trillion in healthcare costs worldwide. The study, carried out by the consulting firm New Angle, delves into the reasons behind the scarcity of key off-patent medications, particularly antibiotics.

Between 2020 and 2024, the average price of the ten most commonly prescribed off-patent antibiotics fell by 10.4%. Conversely, the cost of production and inflation surged significantly, posing a major threat to the sustainability of these vital treatments. Specifically, industry production costs increased by 31.6%, labor costs rose by 25.7%, and energy prices skyrocketed—88% for gas and 62% for electricity.

The affordability issue is exemplified by the decline in prices for popular antibiotics like Amoxicillin, which dropped by 18.9%. However, this price drop occurred despite the fact that Amoxicillin has been one of the most affected by supply shortages in recent times. A staggering 240 antibiotics have been withdrawn from the market, with 385 reported shortages across 16 European countries.

Call for Policy Reforms

The primary message from the study advocates for urgent reforms in national pricing and procurement systems to enhance patient access to medicines. These suggested reforms include:

• - Price Indexing: Align drug prices with inflation and production costs to ensure manufacturers can sustainably produce these essential drugs.
• - Minimum Pricing Policies: Implementing minimum pricing to avoid potential market failures and ensure competitive market conditions.
• - Tiered Pricing Models: Adjusting reference prices based on market dynamics to encourage healthy competition among multiple suppliers.
• - Reform of Procurement Processes: Implementing EU-wide tenders that prioritize reliability and environmental standards over simple cost-saving measures.

The Implications of the Findings

Margarida Bajanca from New Angle emphasized the study's significance, noting the growing risk patients face in accessing essential treatments without comprehensive pricing and procurement reforms. Artur Cwiok, President of Viatris Europe, echoed these sentiments, stressing the importance of sustainable market policies that reflect the therapeutic value of off-patent medicines.

The report serves as a wake-up call regarding the broader implications of current antibiotic pricing strategies. Adrian van den Hoven, Director General of Medicines for Europe, emphasized that the outcomes of this study should trigger a reevaluation of how society values antibiotics, especially in the context of rising market consolidation trends that can undermine supply security.

Moving Forward

The study's findings come at a crucial time—marking the World AMR Awareness Week—calling for robust action from policymakers, healthcare leaders, and industry stakeholders. Viatris and Medicines for Europe urge decision-makers to develop sustainable systems that secure access to vital antibiotics for all patients in Europe. This collaboration is essential to mitigate the looming health crisis posed by antibiotic resistance and ensure the continued availability of these lifesaving treatments.

To explore the full study, visit the websites of Viatris or Medicines for Europe, and engage in the ongoing dialogue around improving patient access to essential medicines.