Reducing the cost of friction: the need to keep talking Brendan Barnes Warsaw, 5 December 2007 Dialogue-Innovation-Future EFPIA CEE meeting May 2007

Different roles Common –Treatments for patient Differences –Industry – to make profit by delivering medicines and innovation –Governments – to provide high quality health care and manage budgets = Different roles – but still a relationship

Need to work together Dialogue is always useful Healthcare is one of the areas where dialogue is most important The challenges that you face are the mirror image of the ones we face The costs of failure are real –Time spent on arguing, appeals, political fights… –Lack of stability in policy –Rules are circumvented (loop-holes) or broken –Political interventions –Excessive lobbying activities

What is the dialogue about Innovation Cycle Healthcare provision funding Long-term relationship based on legitimate expectations

What is dialogue not about ? Corruption Weakening Government Easy wins Window-dressing

Golden rules Know the people (RESPECT) Understand their mandate, needs and long-term goals (ACCEPT) Negotiate (MEET) often Act in a predictable way (irrational behaviour is destructive)

Experience at both European and national levels, proves that the pharmaceutical industry is constructively contributing to healthcare policy and legislation debates.

Dialogue at national level UK: sophisticated systems put in place over a number of years through continuous dialogue. Belgium: Pharma.be participates in reimbursement commission France: innovation scale and criteria Sweden

Applied to pricing and reimbursement Advice to governments/payers Make sure industry understands your needs and goals Take the time to explain, consult and listen Accept comments from industry on policy and individual cases Transparency in documentation and process

What are the benefits ? Optimise Poland’s place in the innovation system Sustainable framework for policy (and business) Ability to discuss conflicts early Ability to identify areas of mutual benefit

Even if you are ”top dog”, it is worth getting it right