Value of innovative medicines and vaccines
Investment in innovative medicines helps to achieve higher productivity and an increase to your bottom line, by:
- decreasing presenteeism and absenteeism
- increasing quality of life
- reducing disability
- reducing hospital stays and physician visits
- preventing costly downstream complications
A study looking at the role of pharmaceuticals in reducing health and societal costs found that:
- Every dollar spent on innovative prescription medicines generated two dollars in health and other social benefits.
- Encouraging development of new drugs can reduce overall health care spending.
- Pharmaceutical innovation boosts the economy by improving workplace health and productivity.
(Source: Conference Board of Canada, 2013)
Another study looking at the value that specialty pharmaceuticals brings to employers and beyond found that:
- Dollars spent on high-cost, specialty medications treating 3 chronic diseases (Rheumatoid Arthritis, Crohn’s, and Multiple Sclerosis) generate a direct return on investment to the employee’s plan-sponsoring employer, as well as indirectly to other employers, to the economy, and to the health care system.
- Those benefits include reduced productivity losses, reduced disability costs, reduced need for caregiver resources, and reduced use and costs of healthcare resources.
- The estimated benefits ranged from $6,600 to $17,000 per year, on average. But this does not include other intangible benefits like the ability of employers with a comprehensive and competitive benefit plan to recruit and retain employees.
(Source: Conference Board of Canada, 2016)