Michel Eschenbrenner, Servier Romania: Speaker at Innovate Health Forum 2024

Michel Eschenbrenner, the General Manager at Servier Romania, will be sharing his insights as a speaker at the upcoming Innovate Health Forum 2024. This pivotal event is set to convene at the Courtyard by Marriott Bucharest Floreasca on May 22, offering a unique platform for leaders to discuss and shape the future of healthcare. Michel’s extensive experience in the pharmaceutical industry will undoubtedly enrich the dialogue around healthcare innovation and transformation at this distinguished forum.

How has the industry of cardiac drugs and treatments evolved over the last 10-20 years, particularly since 2020, a period marked by various crises?

The total pharmaceutical market passed the 6.5 billion euros threshold towards the end of 2023, growing in value with 13%, but being stable when looking at volumes compared with 2022. Out of the 6.5 billion euros, more than 70% were represented by the prescription medicines (growing in value with 14% vs 2022, stable in volumes) and close to 30% were represented by the over the counter (OTC) and consumer healthcare (CH) products (growing in value with 11% versus 2022, with a slight growth in volumes, close to 2%).

Breaking down the prescription medicines group, the hospital products were growing in value 7% vs 2022, but decreasing in volumes, -11%, and the retail prescription medicines were growing 14%, stable in volumes versus 2022. Although 75% of the value of the prescription medicines group is attributed to the innovative medicines group, if we look at the volumes, the market is dominated by the generic medicines, with 75% of the total volumes.

The main drivers of the growth in value in 2023 vs 2022 in the total pharmaceutical market are coming from the cancer medicines (more than 200 million euros), antibacterial and antiviral medicines (more than 120 million euros) and more than 180 million euros growth coming from the OTC and CH medicines. (Ref: IQVIA sell-in, units and sales in euro at wholesaler price/MAT09 2023 vs MAT09 2022).

Although the pharmaceutical spent is growing, at a closer look, the numbers are worrying both from the investment perspective and from the healthcare indicators perspective.

From the financing perspective, total pharmaceutical expenditures per inhabitant in Romania represent half of the EU average, with increasing problems caused by the aging population, poor lifestyle in general and the large number of patients diagnosed with chronic diseases.Public expenditure per capita, adjusted to purchasing power parity, was EUR 1,303 in Romania compared with the European average of EUR 3,319, in 2021, while only about 40% of ensured population is paying the health contributions. The healthcare system in Romania is under financed, with only 4.5% of the GDP financed by the state from public sources in 2024, unchanged compared with 2023 and close to the level of 2018, before the pandemic crisis.

A budget allocation of 9% from the GDP for healthcare would bring us closer to the European standards and it is essential to cover the real needs of the patients and of the healthcare system.

From the healthcare indicators perspective, Romanians’ mortality is very high from causes that could be treated or avoided. Both the mortality rates from treatable and avoidable causes are well above EU averages. A Romanian who has reached 65 years old, either male or female, has only 4 years of healthy life left, twice less than the European average. On average, a citizen of the European Union enjoys 64 years of healthy life if he is a woman and 63 years if he is a man. However, if from Romania, a woman will be only 58 years old, and a man 57 years old. Romanians’ life expectancy is the third lowest in the EU: 75.3 years, compared to 80.7 years, the European average (Ref: State of Health Chart 2023).