European Study Unveils Price Drops Amid Rising Production Costs and Drug Shortages

European Study Unveils Rising Costs and Antibiotic Shortages

As the World Antibiotic Awareness Week begins, an independent study shared by Viatris and Medicines for Europe has revealed alarming trends regarding the availability of essential antibiotics in Europe. The study highlights a paradoxical situation: while the average price for the top ten off-patent antibiotics has decreased by 10.4% from 2020 to 2024, the associated production costs have surged significantly. During this period, industrial production costs rose by 31.6%, labor costs by 25.7%, and energy prices skyrocketed by up to 88% for gas and 62% for electricity. The study underscores the pressing need for coordinated action to reform pricing and supply systems in Europe’s healthcare market.

The consequences of these trends are dire. Notably, amoxicillin prices have decreased by 18.9%, making it one of the most commonly used antibiotics despite facing shortages. A staggering 240 antibiotics have been removed from the market, with 385 instances of shortages reported across 16 European countries between June and July 2025. These shortages raise concerns over the ability of healthcare systems to treat infections effectively, particularly as one in six bacterial infections worldwide is now resistant to antibiotics. The World Health Organization projects that resistance could result in up to 10 million deaths annually by 2050, projecting a looming healthcare crisis.

The implications are far-reaching. Margarida Bajanca, the principal researcher involved in the study, stresses that continued price decreases driven by current market policies pose a significant threat to the economic viability of antibiotic production. Without urgent reforms in pricing and public procurement policies, European patients may face restricted access to essential treatments, exacerbating public health risks and accelerating antimicrobial resistance.

In response to these challenges, the study outlines specific policy recommendations aimed at safeguarding the future availability of antibiotics:

1. Linking Prices to Production Costs: Inflation and production costs must be factored into pricing mechanisms to ensure manufacturers can sustainably produce essential medicines.
2. Implementing Minimum Pricing Policies: Short-term savings strategies can jeopardize mid-term availability. Establishing minimum prices can stabilize market conditions and encourage ongoing production.
3. Dynamic Reference Pricing Models: Pricing for medicines should be adaptable to market conditions, allowing adjustments based on the number of suppliers.
4. Reforming Public Procurement Processes: Encouraging multi-winner bids and considering criteria beyond price, such as supply reliability and environmental standards, is essential for a stable medicine supply chain.

Beyond immediate concerns, these insights prompt a broader reflection on the value society assigns to antibiotics. Adrian van den Hoven, Director General of Medicines for Europe, emphasizes that current pricing policies may be detrimental. He advocates for a paradigm shift in thinking regarding antibiotic accessibility and sustainability, underscoring the need for action during this Awareness Week.

Viatris, positioned uniquely to bridge the gap between generic and branded medications, expresses a commitment to ensuring access to health care for all. The company’s global reach enables it to provide over a billion patients with high-quality medicines annually. This focus on accessibility is vital in light of the study's alarming findings, reinforcing the message that protecting access to antibiotics requires both evidence-based actions and systemic changes.

As stakeholders in healthcare, both Viatris and Medicines for Europe urge policymakers and industry leaders to engage in the findings of this independent study and take steps towards creating sustainable systems for antibiotic access. Tackling the dual issues of rising costs and declining prices is essential not only for patient health but for the broader battle against antimicrobial resistance.

For more details, the complete study can be accessed on Viatris and Medicines for Europe’s websites.