How can the Pharma Industry assist the NHS in constrained times? Can Pharma help with QIPP? PDIG...

How can the Pharma Industry How can the Pharma Industry assist the NHS in constrained assist the NHS in constrained

times? times? Can Pharma help with QIPP? Can Pharma help with QIPP?

PDIG meeting, 10 June 2010

Alison CloughCommercial & Communications Director, Association of the

British Pharmaceutical Industry

The environment is getting tougher

Ageing demographic

Increasing demand on healthcare resources

Economic slowdown

Acceleration of technical advancement

Win- win-win

Partners in Improving Care and Healthcare Delivery

Through the continued process of innovation in the UK, further benefits can

•1 in 5 of the leading medicines used around the world were developed by a UK Company

• Increase in life expectancy over time

Prescription for innovation (ABPI 2009); WHO (2006)

November 2009

Innovation fuels better patient outcomes

Coronary heart diseaseAge standardised mortality rates in population

aged 15-74, circa 2005

0

20

40

60

80

100

120

140

OHE calculation based on WHO Mortality Database (WHO), Mortality Statistics Series DH2 (ONS), Mortality Statistics Deaths Registered DR_06 (ONS), Vital Events Reference Tables (General Register Office of Scotland), Demographic Statistics (Northern Ireland Statistics and Research Agency), Population Estimates and Projections (ONS).

Mortality rates from disease remain high - there remains scope for further improvement in public health

Heart and circulatorydisorders –leadingcause of death inEngland in 2007,resulting in 158 500deaths (34% of alldeaths)

Cancer responsible for23% of all deaths

Atlas of Risk (NHS 2009) Slide reproduced courtesy of Pfizer

34%

23%

Medicines Life Cycle in UK ...delivering efficiencies but out of balance ...?

The UK has amongst the lowest market share of new medicines across

Europe

UK has slow & low use of innovative

medicines

Source: Compendium of Health Statistics 2009 (OHE), updated Hospital prescribing data (IC) PPA and PCA data. Market Statistics IMS World Review, OECD GDP data. PPRS reports to Parliament 6th and 10th IMS world review EGA National Association 2007.

Encourage Innovation

Comparatively, UK has low new product uptake

Source: IMS world review



Europe

3 price cuts since 2005


medicines

UK prices are amongst the

lowest in Europe


Maximise value for patient,

NHS & Industry

Encourage Innovation

UK prices lowest in official PPRS Report to Parliament-December 2009

Table: price index for top 150 UK branded medicines (UK = 100) Bilateral comparisons of ex-manufacturer prices (sources PPRS reports to Parliament 6 th and 10th)

2000 DH estimate

2000 Rank 2006 DH estimate

2006 Rank

2008 DH estimate

2008 Rank

USA 209 1 188 1 252 1Germany 91 3 105 =2 142 2Ireland 83 =4 105 =2 134 3Belgium 78 9 97 6 122 4Finland 83 =4 96 7 119 5Netherlands 81 6 94 =8 115 6Austria 77 10 94 =8 111 7France 80 7 89 10 108 8Sweden Na 103 4 116 9Spain 64 11 85 11 109 10Italy 79 8 78 12 101 11

UK 100 2 100 5 100 12



Europe

3 price cuts since 2005

• 83% generic prescribing• 65% by volume is generics•Average price of generics amongst lowest in Europe


medicines


lowest in EuropeUK has very

efficient use of generics



NHS & Industry

EfficiencyEncourage Innovation

The UK is amongst the EU markets with largest penetration of

generics, with ~65% of volume

Source: EGA National Association 2007

Generics market share in Europe (2006)

Generics share of volumes (%)

Generics share of value (%)

2009 UK generic prescribing rate =83%



Europe

3price cuts since 2005

• 83% generic prescribing• 65% by volume is generics• Average price of generics

amongst lowest in Europe


medicines


lowest in EuropeUK has very

efficient use of generics



NHS & Industry

EfficiencyEncourage Innovation

Only 1% GDP is spent on medicines in UK cf EU average 1.5%, Fr 2%, Greece 2.3%

Source: Compendium of Health Statistics 2009 (OHE), updated Hospital prescribing data (IC) PPA and PCA data

%

NHS spend and Medicines Bill as a percentage of the NHS costs 1998-2008

Total Medicines Bill as a % of NHS spend has been in sustained decline since 2004

Annu

al S

pend

(£bi

llion

)

Economic picture

• The medicines bill is already delivering efficiencies and is under control.

• Important to meet NHS / health needs as well as economic /industrial policy.

• Pharma is one of the key industries underpinning economic recovery.

Driving health & economic benefit for the UK

Opportunities for industry participation in QIPP

• Joint working - implement national strategies for long term conditions or tackle local priorities

– Many examples contained within the ABPI/DH ‘Moving Beyond Sponsorship’ Toolkit.

• Support for the redesign of care pathways - ensure the appropriate use of innovative new medicines.

• Management support to review processes & support change programmes.

Happy Hearts Project

Aim- to find and treat ‘hard to reach’ patients with multiple CVD risk factors and improve patient care and services in Nottingham.

• Nottingham City PCT and six companies with ABPI• Primary care based CVD risk identification and management• Nottingham mortality rates significantly higher than the

national average. • Targeted at 13 GP practices in most deprived areas

Identified 1352 patients (66%) with a risk level of >20%. Patients were given support to manage and reduce that risk including appropriate medication.

Partners in Improving Care and Healthcare Delivery

Driving Health and Economic Benefit for the UK

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