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Research Highlights Declining Antibiotic Prices Amid Rising Production Costs in Europe

As the World Antimicrobial Awareness Week kicks off, a new report has emerged from the World Health Organization detailing a global increase in antibiotic resistance. The findings indicate that 1 in 6 bacterial infections worldwide is now resistant to antibiotics, with a dire projection that by 2050, antibiotic resistance could lead to 10 million deaths annually and escalate healthcare costs to $1 trillion. This underscores the urgent need for coordinated action to address these challenges.

The Importance of Access to Antibiotics

With patent protections for many essential antibiotics expiring, ensuring consistent access to these medications is more critical than ever. Viatris Inc., a global healthcare firm, alongside the Medicines for Europe organization, presented results from an independent study conducted by New Angle. This study focused on the causes behind shortages of essential off-patent medications, particularly antibiotics.

Key Findings of the Independent Study

Titled "Increasing Patients' Access in Europe to Off-Patent Medicines," the study highlights the need for reform in national pricing and procurement systems to improve patient access to medications. Here are the key findings of the report:

1. Price Decline vs. Rising Production Costs: Between 2020 and 2024, the average price of the 10 most popular off-patent antibiotics decreased by 10.4%, while production costs surged dramatically, with industrial production costs increasing by 31.6%, labor costs rising by 25.7%, and energy prices soaring by 88% (natural gas) and 62% (electricity).
2. Impact of Shortages: Amoxicillin prices fell by 18.9%, yet it remains one of the most affected by shortages. A total of 240 antibiotic medications have been withdrawn from the market, with 385 recorded shortages across 16 European countries during a specific reporting period.

Call for Policy Reforms

To secure the availability of antibiotics and other off-patent medicines, Viatris advocates for immediate policy reforms to support the economic viability and accessibility of these essential drugs. Suggested reforms include:

• - Indexing Prices to Inflation: Adjusting antibiotic prices according to inflation and production costs to maintain profitability for manufacturers.
• - Minimum Pricing Policies: Introducing a minimum price to ensure market viability and prevent disruptions caused by short-term savings.
• - Tiered Pricing Models: Implementing dynamic reference prices based on market competition levels, allowing for price adjustments according to the number of suppliers.
• - Modernizing Procurement Processes: Promoting multi-winner tenders and non-price criteria across the EU to ensure reliable supply and environmental standards.

Conclusions and Future Outlook

Margarida Bajanca, the main researcher from New Angle, emphasized that off-patent antibiotics are foundational to healthcare, enabling routine treatment of infections and setting standards for surgical care. The study demonstrates a critical disconnect as the prices of these drugs decline due to existing pricing and procurement policies while production costs escalate, jeopardizing their continued availability. Without reform in pricing and procurement practices, patients across Europe face the risk of losing access to these vital treatments, undermining public health and accelerating antibiotic resistance development.

In a call to action, Artur Cwiok, the president of Viatris Europe, noted, "Ensuring patient access to medicines requires a strong and balanced market policy that reflects the therapeutic value of off-patent medicines, ensuring availability and supply security for all European patients."

Adrian van den Hoven, CEO of Medicines for Europe, stressed the growing concern regarding the value society assigns to antibiotics amid declining pricing trends caused by market consolidation. He urged policymakers to reconsider pricing policies that undermine supply security and challenges facing antibiotics, making clear that the results of this report should act as a wake-up call to tackle these pressing issues.

These study findings hold significant importance during the globally recognized World Antimicrobial Awareness Week. For Viatris, they underscore the organization's extensive efforts towards combating antibiotic resistance, exemplified through multi-stakeholder collaborations in Sweden’s PLATINEA program, institutional efforts within the AMR Industry Alliance, and ongoing initiatives to increase access to both established and innovative antibiotics.

In conclusion, Viatris and Medicines for Europe are calling upon policymakers, healthcare leaders, and industry partners to take action based on these findings to create sustainable systems that ensure access to essential antibiotics. Full details of the report can be accessed through Viatris and Medicines for Europe’s official websites.