BREXIT ANALYSIS – PRESENTED BY EDELMAN
EU REFERENDUM
23 JUNE 2016
MMO O N NT HTH S S
DAYS DAYS
HEALTH – Overview The Brexit vote brings immediate uncertainty to the pharmaceutical industry, in terms of export (the EU accounts for 56% of UK pharma exports) and regulation – of intellectual property rights, clinical trials, quality standards, and drug and devices approvals. While individual countries do have approval systems in place, as well as country rules over pricing and reimbursement, pharmaceutical companies see the harmonisation of approvals afforded by the European Medicines Agency (EMA) as a means of containing costs. We also need to consider the potential impact on life sciences research. After Germany, the UK is the biggest beneficiary of EU research funds and the primary recipient of EU venture capital funding in the pharmaceutical industry. With Brexit, we may see those funds shift to other markets, including the US. The EMA, which is currently based in London, will likely have to relocate. In addition, the UK could lose much of its influence on European healthcare debates: the UK would lose its vote on the management board, where the UK currently holds the CEO position on the Medicines and Healthcare Products Regulatory
Agency, as well as its voice on working committees. Finally, we need to consider the impact on the NHS, which was at the heart of the arguments of the Leave campaign. Leaving the EU will negatively affect the overall economy, at least in the short term, which means there could be less funding available for health services. That reduction would be on top of the £22bn efficiency savings the NHS (in England) is expected to deliver by 2020. Further, the NHS is more dependent on oversees workers than any other European health system: the future of the 10,000 NHS doctors and other healthcare professionals who come from across the EU becomes more uncertain, posing potentially significant challenges for an already understaffed healthcare system. As we begin to focus on establishing the UK’s future relationship with the EU and the potential impact on the Health sector, those in the sector will want to consider their views on significant industry Directives and Regulations on such diverse issues as marketing authorisation of prescription and non-prescription medicines, pricing transparency, clinical trial regulation, and surveillance related to medical device performance and safety.
FURTHER INFORMATION
Ann Bartling Managing Director, Health Brands Edelman UK Ann.Bartling@edelman.com +44 20 3047 2164
Gurpreet Brar Managing Director, Public Affairs Edelman UK gurpreet.brar@edelman.com +44 203 047 2466
Kajsa Wilhelmsson Head of Health Policy & Market Access Edelman Brussels Kajsa.Wilhelmsson@edelman.com +44 20 3047 2005
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