Next Wave of Healthcare Treatment Breakthroughs Coincides with Cost Containment across Western Europe, IHS Says
June 21 2016 - 10:50AM
Business Wire
An immense wave of progress for patients is posing increasingly
challenging questions for policymakers, payers and healthcare
stakeholders in Western Europe, according to a new report released
today by IHS Inc. (NYSE: IHS), the leading global source of
critical information and insight.
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The IHS Life Sciences report, entitled Comparative Healthcare
Financing Trends in Europe: A Retrospective and Forward-Looking
View, examines healthcare financing trends between two periods:
2010 to 2014 and 2015 through 2020. Countries in the study include
France, Germany, the Netherlands, Poland, Spain and the United
Kingdom. The diverse set of healthcare systems, pharmaceutical
pricing and reimbursement policies, economic conditions and
political circumstances in these countries enabled the team to
model pricing structures through a variety of systems.
Download our report
“One of our key findings is that the next wave of treatment
breakthroughs coincides with a period when cost containment is
firmly on the healthcare system agenda,” said Cameron Lockwood,
senior consultant at IHS Life Sciences and the report’s author. “A
wealth of new treatments and innovations, specifically in the
cancer field, will reach the market at a time when many countries
are on cost-saving drives.”
Emerging new treatments and continued economic recovery will
contribute to an uptick in public reimbursement spending on
pharmaceuticals, the IHS report says. In some countries, this
spending is forecast to be less as a share of overall public health
expenditure compared to 2014, raising question marks over the
ability to finance innovations in therapy.
Between 2015 and 2020, growth in public healthcare
expenditure is expected to remain negative or subdued
Under a variety of different growth scenarios, forecast public
reimbursement spending on oncology medicines is set to account for
a share of overall public drug spending broadly similar to current
expenditure patterns. A bottom up, budget impact modelling approach
suggests that these growth scenarios are able to accommodate
significant new therapy classes in some of the most common
cancers.
The reality remains that certain countries will nonetheless face
pronounced budgetary pressures. “This is true in the case of a
country such as Poland, where pre-existing gaps in access mean that
maintaining or only marginally increasing the budget for oncology
medicines poses a risk to access to future innovations,” Lockwood
said. “Competing government priorities stemming from campaign
pledges limit resources, and there has reportedly been a slowdown
in the number of innovative new drugs securing reimbursement
listing.”
The report also highlights Spain as another country where,
depending on the resolution of political uncertainty, ongoing
deficit challenges may result in constrained resources and thus
more pronounced challenges in sustaining access to emerging
treatments. The next government in Spain is expected to make
significant healthcare budget adjustments in order to meet deficit
objectives. Germany is predicted to see a negative CAGR in total
public healthcare spending over 2015-20. France’s social security
deficit challenges reduces spending growth to an historic low.
To make up the difference, between 2015 and 2020, rates of
growth of private healthcare expenditures are once again predicted
to exceed those of public outlays
About the report
This report considers the structure of the healthcare market in
each country in regards to public and private contributions, how
expenditure is distributed across different categories of care, and
the evolution of pharmaceutical spending both in general and with a
particular focus on oncology. Exploration of these broad trends in
financing is joined by a consideration of policies pursued by these
countries, which have enabled them to support access to innovations
in treatment while managing costs. This retrospective analysis lays
the groundwork for a forecast of future trends through to 2020,
looking to identify how market structures and government policies
are likely to position countries going forward.
In order to forecast future trends in expenditure, the analysis
relies on a number of data sources and methodologies. Top-line
projections for overall healthcare and pharmaceutical spending and
the components of private market expenditure come from the IHS
World Markets Healthcare Forecasts service, which derives its
forecasts based on projected economic growth and historical
relationships between that growth and various healthcare
expenditure indicators. Economic growth forecasts derive from the
comprehensive macroeconomic data comprising the IHS World Economic
Service. Our PharmOnline International (POLI) service was utilised
to obtain country-specific prices and estimated prices for the
drugs used in the budget-impact analysis.
This report was commissioned by AstraZeneca. All research and
analysis were undertaken independently by IHS Life Sciences.
About IHS Life Sciences
The IHS Life Sciences practice provides a portfolio of
intelligence solutions to optimise the performance of companies and
organizations across the pharmaceutical, biotech, generics, medical
device, hospital, insurance, and public sectors. Our key focus is
to provide actionable insights to support strategic decision
making, particularly in the fields of market access, pricing and
reimbursement (P&R), emerging markets, generics strategies,
therapeutic development pathways, forecasting and market sizing,
and general competitive intelligence. This analysis is based on our
proprietary global data in pharmaceutical pricing, reimbursement
information, clinical trials, and healthcare forecasting.
For more
information:www.ihs.com/LifeScienceshttp://blog.ihs.com/ihs-life-sciences
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and
expertise in critical areas that shape today’s business landscape.
Businesses and governments in more than 140 countries around the
globe rely on the comprehensive content, expert independent
analysis and flexible delivery methods of IHS to make high-impact
decisions and develop strategies with speed and confidence. IHS has
been in business since 1959 and became a publicly traded company on
the New York Stock Exchange in 2005. Headquartered in Englewood,
Colorado, USA, IHS is committed to sustainable, profitable growth
and employs nearly 9,000 people in 33 countries around the
world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016
IHS Inc. All rights reserved.
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