The myth that health expenditure is high when it represents only 9% of GDP against the 12% of the European average and even 17% in the USA. “The weight of wholesalers, retailers and tax authorities. The sector has reached the psychological threshold of 1,000 billion in sales worldwide. The Mps study: Italian expenditure below the EU average, at 9% of GDP against 17% for the United States
03 April 2015 – R.it ECONOMY & Finance
MILAN – Six euros out of ten of the over-the-counter price of a drug originates from the costs associated with wholesalers, retail sales and the tax authorities. Only a minor share, however important (the 40% of the price), is due to the expenses for research and development and the contributions of the importing activities. It is one of the data that emerges from the Report on the pharmaceutical industry elaborated by theResearch & Investor Relations Area of Banca Monte dei Paschi di Siena. The report deals in particular with the formation of drug prices and distribution, a highly structured and widespread segment of economic activity.
It is no coincidence that we speak of an industrial sector among "the most dynamic in the world", with the market doubling over the last ten years and sales that for the first time "exceeded the psychological threshold of 1,000 billion dollars, in 2014" . Even in Italy, despite the very difficult economic context in 2013, the pharmaceutical sector had grown by just under 6%, with 72% of the entire production destined for export. For Italy, however, there is an average expenditure lower than that of the EU and the USA.
The report also debunks some clichés, "such as the myth that health spending is high when it represents only 9% of GDP against the 12% of the European average and even 17% in the USA". Even the international comparison of drug prices highlights how those practiced in Italy are not high compared to the foreign average: recent studies highlight how the prices of pharmaceutical products in our country are 14.6% lower than the European average. Analyzes of accredited institutions then show that, however, the costs that must be borne by companies to complete the drug approval process have increased by 145% during the last 10 years, an average compound annual growth rate of 8.5%.
