By Theodore Tryphon
The previous decade of the recession left a deep imprint on the Greek economy, slowing productive investment and creating an important investment gap. In 2022, investments in the country accounted for just 13.7% of GDP, compared to 22.7% in the eurozone. Covering this difference is a fundamental prerequisite for the sustainable development of the Greek economy. This requires support for export orientation sectors, incorporate technology, invest in human capital and add value to the national productive base.
The Greek pharmaceutical industry is fully part of this category. With significant investment projects, it contributes decisively to the reduction of the investment deficit. It is a strategic pillar of industrial production associated with innovation, quality and employment. The country has 45 pharmaceutical factories, which account for 10% of European production capacitywhich makes Greece one of the five most important pharmaceutical nodes in Europe.
The contribution of the Greek pharmaceutical industry is also reflected in its export potential. Greek drugs exported to about 150 countriessecuring significant revenue for the economy and expanding the country’s international presence. Production follows the stricter standards of the European Union, further enhancing the reliability and quality of Greek pharmaceuticals.
The A total investment program of the Greek pharmaceutical industry is estimated to reach 1.8 billion euros by 2028. The program includes the construction of 10 new plants, with 22 new production units and the creation of 14 research centers. These investments have a significant multiplier effect: according to the IOBE, the overall impact on GDP is equivalent to 130% of investment expenditure, while the public reciprocity is 22.5%. In addition, investments create quality jobs and boost public revenue.
In addition to their economic importance, these investments ensure the adequacy of the domestic pharmaceutical market. The implementation of the program will allow up to 75% of the country’s pharmaceutical needs to be covered, with quality and economically affordable treatments. This means better shielding the health system against crises, improving patients’ access and limiting shortages.
However, the key obstacle to boosting investment dynamics is the excessive burden of the industry through the rebate and clawback mechanisms. It is a unique European framework that undermines the viability of hundreds of economic drugs. Mandatory returns remove valuable resources from productive investment, while without export activity, many businesses would have been forced to withdraw basic market formulations.
OR Further development of the pharmaceutical industry requires targeted policy interventions:
- Enhancing the funding of the pharmaceutical budget to reduce the excessive burden of the industry, which will allow even more investment.
- Acceleration of reforms to control prescription by utilizing digital tools and mechanisms for analysis of prescription behavior that detects derogations and limiting the unjustified waste of resources.
- Improving business liquidity, with manageable regulation to repay the cumulative liabilities, allowing the smooth financial operation of businesses and therefore securing state revenue.
- Establishment of a permanent framework for investment incentives. The clawback of clawback with investments proved to be very successful, leading only to the first period in the deposition of ~ 60 investment proposals. Consequently, the mechanism of offsetting mechanism and the expansion of the relevant incentive is required to cover all investments, taking into account the generally long -term investment design horizon.
The Greek pharmaceutical industry is one of the most dynamic and competitive sectors of domestic production. Investments are currently being strategic Not only for the economy, but also for public health. Completion of the investment program can make Greece a reference point for pharmaceutical research and production in SE Europe, a realistic and absolutely feasible goal.
* Theodoros Tryphon is President of the Panhellenic Union of Pharmaceuticals, Vice President of the Board of Directors. Elpen
Source :Skai
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