Italian government to boost pharmaceutical spending by €1.2bn in 2026

Is Drug Pricing Still a Problem or Just Poorly Understood? Behind every debate about healthcare sustainability lies one recurring question: why do medicines cost what they do? The OECD’s recent report on medicine price sharing offers a revealing look. Across more than 40 countries, it found that while governments want access to real “net” prices (after rebates and discounts), most systems still operate on partial or outdated list prices. The gap between the two distorts policymaking, limits affordability assessments, and makes regional collaboration almost impossible. But the other side of the story is equally important. Pharmaceutical companies fear that full transparency could erode their pricing flexibility across markets. When net prices are disclosed, the lowest price tends to become the global benchmark reducing their ability to fund R&D, adapt to local purchasing power, or negotiate tailored access programs. Some markets, like Canada and Australia, have managed this tension through structured, confidential reporting systems that build trust without collapsing commercial viability. Now imagine a Saudi example of this balance in action: A major biologic manufacturer enters a partnership with the Ministry of Health Saudi Arabia or National Unified Procurement Company "NUPCO" to supply oncology treatments across several health clusters. The company securely submits its net ex-factory prices into a shared database managed by Council Of Health Insurance and SFDA - هيئة الغذاء والدواء. This allows Council Of Health Insurance to calibrate reimbursement rates and helps clusters plan budgets using real-world data all without breaching confidentiality. When the Ministry of Health Saudi Arabia or National Unified Procurement Company "NUPCO" later negotiates a similar PPP supply for another therapeutic area, it already has credible price benchmarks from the system. The result: ○ Faster contract closure. ○ Better cost predictability for the government. ○ Sustained profit margins for the company. ○ A more transparent, trustworthy environment for future innovation. The takeaway is clear: the future is structured transparency. A model where governments confidentially share real net prices within trusted networks, while preserving negotiated terms and commercial sensitivities. I believe for the kingdom, this approach can strengthen procurement efficiency, value-based pricing, and PPP negotiations, while keeping the market attractive for innovation. Transparency, when designed wisely, doesn’t weaken the system it stabilizes it. OECD working paper link: https://lnkd.in/drCKpDdH #HealthcareTransformation #PharmaceuticalPolicy #DrugPricing #ValueBasedCare #HealthcareEconomics #MarketAccess #MOH #HealthPolicy #OECD #HealthcareInnovation #HealthcareLeadership #NUPCO #TransparencyInHealthcare #HealthcareReform #SaudiHealthcare

Thanks Markus, this article should emphasize the strategic decisions of EU/ROW pharma companies: 💊 When Drug Pricing Policy Becomes a Double-Edged Sword This week, The Economist warned that the U.S. government’s new approach to lowering drug prices — through tariff leverage, price negotiations, and manufacturing incentives — could backfire, hurting innovation and access instead of improving them. For global pharma players, the message is clear: building new U.S. manufacturing capacity may no longer be just an industrial decision — it’s becoming a policy negotiation. From our perspective as a European company exporting worldwide, the article highlights three strategic realities: 1️⃣ Local manufacturing won’t shield you from pricing pressure. Even firms that invest billions in U.S. plants may face requests for discounts or “most-favored” pricing. Pfizer’s recent tariff-linked agreement shows how manufacturing and pricing are now intertwined. 2️⃣ Innovation is at risk when predictability disappears. If return on investment is squeezed unpredictably, R&D pipelines slow. Stability — not just low prices — keeps medicines flowing. 3️⃣ Flexibility beats rigidity. In today’s landscape, success will depend on hybrid strategies: combining U.S. CDMO partnerships, dual filings, and cost-optimized EU hubs to stay resilient as policy shifts. 📌 Bottom line: Policies aiming to make healthcare more affordable must avoid undermining the very innovation that makes it possible. For global pharma, the real challenge isn’t just building faster — it’s building smarter, in markets that are changing faster than ever.

💊 There may be big changes in how the UK reimburses #pharma companies — and it’s happening at a time when the #lifesciences sector is facing real economic pressure. 💊 The FT has reported that the government may offer concessions to the industry over #drug reimbursement, potentially as part of a wider agreement with the US, and in response to several #pharma companies recently pausing investment in the UK. 💊Underpinning the withdrawal of UK projects is concern about the current reimbursement model that applies to the supply of branded medicines to the #NHS - the voluntary scheme for branded medicines pricing, access and growth, or the #VPAG scheme. The government now appears to be suggesting that it may alter the pricing structure under that scheme, but it is unclear how far it is willing to go, particularly in view of the increasingly negative economic outlook. 💊My colleagues Gareth Morgan and Catherine Drew have shared their views on what these changes may look like in this Out-Law News article, including linking the amount #pharma companies are paid to the performance of #medicines in patients, and placing an increased value on #innovation, which is particularly timely as innovative medicines such as advanced therapy medicinal products #ATMPs have been in the headlines this month following a major breakthrough in developing a new treatment for Huntington's disease. If you're working in or around #lifesciences, this is one to watch 👇 https://ow.ly/XiK250X4pEA #pinsentmasons #oneEUteam

With 2026 Medicare price reductions under the Inflation Reduction Act (IRA) set to take effect on January 1, and 2027 negotiations due by November 1, attention is shifting to how these rounds could reshape U.S. drug pricing. Final prices for the 15 drugs selected for 2027 are expected by late November, though early disclosure is possible given renewed focus on most-favored-nation pricing and last week’s Pfizer–Trump administration agreement. The 2026 cuts appeared significant, with list reductions of up to 79%, yet the actual impact on manufacturers is limited. The new rates largely codified existing rebate structures, meaning realised net prices changed little. ⚖️ The key test comes in 2027. A more assertive move toward international benchmarks is likely as policymakers seek greater price parity with OECD peers. The semaglutide franchise will be pivotal. Ozempic’s U.S. ASP is roughly $450 per prescription, Medicare net near $400, and the UK list price around $200. A negotiated price below $200 would indicate a shift in policy intent with implications for both $NVO and $LLY. 🔬 The negotiation landscape is also shifting. OBBBA timeline adjustments move Keytruda and Opdivo beyond the 2028 window, while Biktarvy, Trulicity, and Erleada are now more probable inclusions. Some effects will be muted where biosimilar entry precedes effective pricing changes. 📊 Over time, CMS’s inclusion of Medicare Advantage data may rebalance pressure from Part D toward Part B biologics, expanding the scope of exposure for large-molecule portfolios. 💡 At Princeton Biopartners, we help biopharma leaders translate evolving pricing policy into strategic clarity by linking IRA exposure, evidence priorities, and lifecycle value across portfolios. #PharmaStrategy #DrugPricing #IRA #BiotechInvesting #MarketAccess #PrincetonBiopartners #Pfizer #Lilly #Keytruda #Opdivo #Biktarvy #Trulicity #Erleada #Biosimilars #MedicareAdvantage

Interesting insights from IQVIA! Key Findings: 1. Drug spending stable at ~15% of healthcare costs: Across 12 global markets, total drug expenditure has remained a consistent proportion of healthcare spending, ranging from 9–20%. 2. Wide variation by country: The UK and Canada have the lowest drug shares (9% and 11%), while Japan and South Korea report the highest at about 20%. 3. Healthcare spending has grown faster than drug spending: Since 2000, total healthcare expenditure has risen more sharply, while medicine spending has stabilized due to generics, biosimilars, and pricing controls. 4. OECD data remains incomplete: Public sources often exclude non-retail drug use and post-hoc rebates, requiring methodological enhancements to estimate true total expenditure. 5. Cross-country consistency increasing: Over two decades, drug spending shares have converged, indicating greater alignment in global cost structures and healthcare investment priorities.

Interesting move if true: higher NHS prices to keep investment here. In practice: more UK activity (hooray), but tighter value checks from trusts. Likely hiring priorities: regulatory → market access/commercial. We were talking about this with a medtech founder last week. It could open doors, but only for teams who can show clear value — for patients, for budgets, and increasingly for the environment. Keep the story simple: what it does, proof it works, proof it pays. #MedTech #Pharma #NHS #Recruitment #Hiring

India’s Pharma Powerhouse Stays Steady Amid US Tariff Talks Groups like the EFPIA - European Federation of Pharmaceutical Industries and Associations are already sounding alarms about supply chain hiccups or delayed treatments. For India, this could be a nudge to spread its wings to #markets like Europe, Africa, or Southeast Asia, while pushing for clearer global #trade_rules on what “branded” even means. #Tariffs I #US I #Pharma I #branded_drugs I #Exports I #Generics I #Cost_savings I #Healthcare I #Patients I #Public_health I Chakravarthi AVPS I Federation of Pharma Entrepreneurs (FOPE) I WPO World Packaging Organisation Read more: https://lnkd.in/gNy_gDb8

How can the UK develop its initial free-trade agreement with India? Well building on the already substantial ties between the two countries when it comes to manufacturing and supply of off-patent generic and biosimilar medicines would be a natural area to explore. Already a third of NHS medicines comes from India. Our chief executive Mark Samuels writes in the The Economic Times on the areas where further collaboration could occur which would boost economic growth in both countries. https://lnkd.in/eq7m3Z7B #generics #biosimilars #nhs #india