IFPMA represents the innovative pharmaceutical industry at the international level and in official relations with the United Nations. Dr David Reddy joined the association earlier this year, and shares his analysis on how vaccines and treatments are transforming health outcomes for people around the world, and how the pipeline of new innovation can drive even more progress. He also warns that we can’t take this pharmaceutical innovation for granted, and we need the right policies in place to ensure that scientific progress translates into the next generation of medicines and vaccines.

 

2024 has been another incredible year for medical innovation. We have seen new CRISPR technologies made available to patients for the first time, progress in treatments for Alzheimer’s disease, and the roll-out of malaria vaccines to the worst affected countries in the world.

These advances – along with so many others – are leading to real improvements in the health of people worldwide, and are supporting healthcare systems as they grapple with the rise of chronic diseases, ageing populations, the impact of climate change, and emerging infectious diseases.

Pharmaceutical companies have been at the forefront of these advances in medical innovation. Over the past 20 years, the industry has launched over 940 novel active substances (NASs) globally, addressing diseases like cancer, cardiovascular diseases, neurology, and infectious diseases. An extraordinary number.

 

The R&D pipeline

There are over 12,700 medicines in various stages of clinical development globally, half of them biologics and the other half small molecules. Looking ahead, by 2035, it is estimated that 700 new medicines could be launched, preventing, slowing, or stopping disease progression.

This development is supported by a vibrant ecosystem of pharmaceutical companies, biotechs, academia, and medical research charities, all playing their part in evolving the way that we manage disease.

We are also seeing new technologies in development or, after decades of development, emerging on the scene to have a real impact on people’s lives. From my own experience working on mRNA technology decades ago, it has been hugely rewarding to see the acceleration of new mRNA vaccines after their use in the COVID-19 response. Today, 286 vaccines are under development, targeting a wide array of diseases beyond infectious ones, including cancer, allergies and even Alzheimer’s.

Precision medicines that are already transforming cancer treatment now hold potential for chronic diseases as well. And advances such as CRISPR are paving the way for potential cures for previously untreatable genetic disorders, with cell therapies diversifying treatment options across a range of diseases.

Underpinning this progress is the pharmaceutical industry’s commitment to investing in the research and development (R&D) that makes this possible. The top 50 pharmaceutical companies alone are estimated to have spent a total of USD 167 billion in R&D in 2022. What’s more is that R&D spending is rising, increasing by almost 60% in the 10 years from 2012 to 2022.

 

Impact on economic development

This R&D investment has a significant impact on health outcomes, but also strengthens healthcare systems and economies worldwide.

New data published just a few weeks ago demonstrated that the industry contributed USD 2,295 billion to global GDP through direct, indirect, and induced effects. For every dollar generated by pharmaceutical activities, an additional USD 2.04 was created along the global supply chain. And while the sector as a whole directly employs 7.8 million people worldwide – a further 44.7 million jobs were supported indirectly, and 22.4 million jobs were supported through induced effects in the supply chain.

This data also doesn’t take into account the significant economic benefits that medicines and vaccines provide healthcare systems and more broadly to our economies. Just one study demonstrated that adult vaccination programs return 19 times their initial investment.

 

Impact on global health

When we look at the impact that this innovation has had on global health, the numbers are remarkable.

HIV is one area that tells this story particularly clearly. Since the HIV virus was discovered, more than 30 medicines have been approved to treat the HIV infection. With time, medicines have improved in tolerability, efficacy, and convenience for patients. A report from UNAIDS, based on data from 204 countries and territories, found that HIV infections decreased by 22 percent – from 2.11 million to 1.65 million – between 2010 and 2021, while HIV-related deaths decreased by 40 percent during the same period, from 1.19 million to 718,000. Moving forward, a twice-yearly injectable HIV-1 capsid inhibitor could be available for patients soon.

A recent study suggests the early impact of HPV vaccination on cervical cancer deaths, observing a substantial reduction in mortality– a 62% drop in cervical cancer deaths among women under age 25 over the last decade in the US, where the HPV vaccine is recommended since 2006.

 

Sustaining innovation for the future

We can’t take the continued translation of scientific progress into the next generation of medicines and vaccines for granted.

This depends on a system that encourages investment and collaboration, without which such innovation would simply not happen. Take the area of development of new antibiotics. This year, the UN agreed a new Political Declaration on antimicrobial resistance – explicitly acknowledging that, without the right incentives in place, the pipeline for new antibiotics will continue to be weak.

But in other areas, we are seeing that the frameworks that support innovation – including the intellectual property framework – continue to be challenged at both national and multilateral levels. We must continue to support these frameworks if we want to see the benefits that such medical innovation can bring.

Part of the solution lies in seeing healthcare as an investment that delivers healthier populations and stronger economies. Investing in prevention and health innovation could add 8% to global GDP by 2040, according to one study.

As we look to 2025, the pharmaceutical industry remains at the heart of tackling the biggest challenges of our age. Our future pipeline holds the promise of transforming lives and economies worldwide and we are committed to driving the science and the progress that will make this happen.

For more insights on the impact of the pharmaceutical industry, read the new IFPMA Facts & Figures report.