Value_of_Medicine_120309by Eli Lily, USA
52pages
Contents
Page
Medicine Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Importation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Pricing & Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Lilly Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Important Facts
• Spending on prescription medicines in the U.S. is, and has always been, considerably
less than spending on hospital care or physician services.
• Chronic disease accounts for $3 out of every $4 spent on health care. It’s the cost
of disease – not the cost of medicines – that threatens the U.S. health care system.
• Changes in prescription medicine prices are in line with overall medical inflation.
They are not driving increased spending for health services or insurance.
• Prescription medicine coverage is available for Medicare beneficiaries.
• The pharmaceutical industry is committed to improving patients’ access to medicines.
Between 2005 and 2008, through patient assistance programs, the pharmaceutical
industry donated $14.5 billion worth of medicines, filling 115 million prescriptions.
• The pharmaceutical and biotech industries invested a combined $65 billion in
research and development in 2008. Total appropriations for the National Institutes
of Health were $30 billion.
• The Food and Drug Administration (FDA) does not monitor the safety or
effectiveness of medicines purchased anywhere outside the United States.
• Prescription medicines can help lower overall medical treatment costs.
• Pharmaceuticals have the same patent life as other innovations – 20 years. The long
development and review process means a pharmaceutical’s effective patent life is
on average 11–12 years.
• Biopharmaceutical industry investment in research and development (R&D) is about
14 times greater than spending for direct-to-consumer advertising.
• About 46% of the world’s new medicines in 2008 were developed in the United
States – more than in any other country.