Pharmaceutical Innovation in Italy Leads to Decreased Mortality Rates and Increased Cancer Survival
Italy has seen significant advancements in the pharmaceutical sector, resulting in a 40% decrease in mortality from chronic diseases in the past 20 years and an increase of one million individuals surviving cancer in the last decade. These achievements can be attributed to the country’s dedication to innovation in the pharmaceutical industry, with investments totaling 3.3 billion euros in 2022.
Of the total investments, 1.4 billion euros were allocated for the construction of production plants, while 1.9 billion euros were directed towards research and development. The pharmaceutical sector in Italy already represents 2% of the country’s GDP and has the potential to generate further wealth and economic growth. However, experts believe that a more favorable context is needed to attract foreign investment and provide support for research and innovation.
To foster greater investment from abroad and accelerate the progress in pharmaceutical innovation, experts suggest implementing a new governance model, reforming the financing of public pharmaceutical expenditure, and establishing a National Life Sciences Plan. These measures would create a more conducive environment for both domestic and international companies to invest in the Italian pharmaceutical sector.
In 2022, Italy reached a remarkable pharmaceutical production value of over 49 billion euros. Companies with foreign capital have played a pivotal role in driving innovation, contributing to more than 60% of the sector’s production value. Recently, a White Paper titled “Increasing the attraction of foreign investments for the competitiveness of the Italian system – Which strategy for the pharmaceutical industry” was published. It was created by The European House-Ambrosetti in collaboration with Iapg, an association of Italian pharmaceutical companies with American capital, and Eunipharma, a group of Italian pharmaceutical companies with European and Japanese capital. The White Paper sheds light on the contribution of these companies to the sector’s growth and the overall economy.
According to the White Paper, the 47 companies associated with Iapg and Eunipharma are projected to generate a production value of 29.3 billion euros in 2022, accounting for 60% of the entire sector. These companies have consistently outperformed industry benchmarks, with their contribution to the GDP reaching 19.8 billion euros in the past year, exceeding 1% of the national GDP. Additionally, they have invested 2.1 billion euros in production and research, representing 61% of the sector’s total investments.
Nicoletta Luppi, President of the Iapg, emphasizes the need for a new governance model for pharmaceutical expenditure to enhance Italy’s attractiveness and competitiveness in the global pharmaceutical sector. She highlights the importance of considering evolving health needs, demographic trends, and the innovation fostered by companies when formulating the pharmaceutical payback mechanism. Luppi believes that investing in health and attracting resources for pharmaceutical innovation is not only crucial for Italy’s demographic scenario but also essential for economic growth.
Lorenzo Wittum, Chairman of Eunipharma, emphasizes the need for political-institutional, regulatory, and industrial conditions that will support increased foreign investments in Italy. He emphasizes that the pharmaceutical industry’s transfer of knowledge and innovation through research and development are essential components of a country’s development process. Wittum calls for interventions that address issues such as the impact of payback mechanism, the need for reform in the Italian Medicines Agency (AIFA), regulatory simplification, and increased support for research and development investments.
The pharmaceutical sector in Italy has achieved remarkable progress in recent years, resulting in improved health outcomes and economic growth. However, the country must continue to prioritize innovation and create an environment that attracts foreign investments. With the right measures in place, Italy could solidify its position as a leading player in the global pharmaceutical industry.