The Impact of Inflation: A Cost Analysis in the Spanish Pharmaceutical Sector From 2014 to 2023
Author(s)
RAFAEL PARRA GABILONDO, BSc1, DAVID BEAS, BSc1, NURIA RUIZ, BSc1, TERESA DOMINGUEZ, BSc1, Fernando Abdalla Pereira, BSc2, Javier Villaseca, BSc2, Alvaro Hidalgo Vega, PhD2.
1Johnson & Johnson Innovative Medicine, Madrid, Spain, 2Weber Economía y Salud SL, Madrid, Spain.
1Johnson & Johnson Innovative Medicine, Madrid, Spain, 2Weber Economía y Salud SL, Madrid, Spain.
OBJECTIVES: This study aims to analyze the impact of inflation on the Spanish pharmaceutical industry between 2014 and 2023, quantifying the additional costs generated using publicly available data. It examines the effects of inflation on production and distribution in a regulated-price market, where prices are not adjusted upwards despite rising operational costs.
METHODS: A mixed-methods approach was applied, combining a literature review and analysis of publicly available data. Three representative medicines were selected based on specific market dynamics: one affected by generics, another with multiple indications approved, and one competing in a saturated market. Data on production costs, regulated prices, public procurement processes, and key economic indicators were analyzed to identify cumulative financial challenges faced by these medicines during the study period.
RESULTS: The study found that the combination of inflation and regulatory price adjustments generated significant economic pressure in the pharmaceutical sector. Between 2014 and 2023, inflation-related indices for electricity, labor costs, production, liquid fuels, housing rentals, and pharmaceutical products were analyzed. As a global result, inflation over this time period led to an estimated cumulative impact of €6,852 million on the industry’s costs, equivalent to almost 66% of the sector’s total R&D investment in Spain between 2014 and 2022 (€10,374 million). Each selected medicine exemplifies how inflation and the regulatory framework affected specific market dynamics.
CONCLUSIONS: The inflationary environment in recent years, combined with a restrictive regulatory framework limiting the ability of the pharmaceutical sector to pass increased operational costs onto medicine prices, has intensified financial pressure across the industry. This is further exacerbated by price reductions tied to the entry of generics, approval of new indications, competition in saturated markets, and the limited ability to adjust prices within this regulatory system.
METHODS: A mixed-methods approach was applied, combining a literature review and analysis of publicly available data. Three representative medicines were selected based on specific market dynamics: one affected by generics, another with multiple indications approved, and one competing in a saturated market. Data on production costs, regulated prices, public procurement processes, and key economic indicators were analyzed to identify cumulative financial challenges faced by these medicines during the study period.
RESULTS: The study found that the combination of inflation and regulatory price adjustments generated significant economic pressure in the pharmaceutical sector. Between 2014 and 2023, inflation-related indices for electricity, labor costs, production, liquid fuels, housing rentals, and pharmaceutical products were analyzed. As a global result, inflation over this time period led to an estimated cumulative impact of €6,852 million on the industry’s costs, equivalent to almost 66% of the sector’s total R&D investment in Spain between 2014 and 2022 (€10,374 million). Each selected medicine exemplifies how inflation and the regulatory framework affected specific market dynamics.
CONCLUSIONS: The inflationary environment in recent years, combined with a restrictive regulatory framework limiting the ability of the pharmaceutical sector to pass increased operational costs onto medicine prices, has intensified financial pressure across the industry. This is further exacerbated by price reductions tied to the entry of generics, approval of new indications, competition in saturated markets, and the limited ability to adjust prices within this regulatory system.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
EE714
Topic
Economic Evaluation, Health Policy & Regulatory
Topic Subcategory
Novel & Social Elements of Value
Disease
No Additional Disease & Conditions/Specialized Treatment Areas