1. Pharmaceutical company one of the most profitable sectors

A. The sectors with the greatest profitability in the years of recession in our country, is included the pharmaceutical industry, according to the data analysis of the sectoral studies of Icap Group for the years 2012 and 2013.

Icap Group utilized its material of the previous biennium sectoral studies, selecting 40 important sectors which has been recording the developments that characterized the economic activity of recent years.

The profitability index equity in the sector of pharmaceutical companies reached 24.32%. In detail:

• According to the study, the highest rates of index equity, presented the sectors – subsectors: Auditing firms (48.02%), agricultural supplies – fertilizers (40.17%), coffee – import (35.30%), coffee – processing (34.37%), pharmaceutical companies (24.32%).

• On the basis of the profitability indicators on capital employed, the best performances recorded the sectors – subsectors: Auditing firms (10.56%), coffee – import (8.93%), brewing (7.40%), pharmaceutical companies (6.78%), optical equipment – shops (5..28%).

• The above positive rates of profitability indicators are displayed, when the 50% of presented sectors/subsectors, shows negative sign on indicators, in the year 2012.

B. The volume of produced goods from alteration factories and overall the classified industrial production (alteration, mines-quarries, electricity, water supply), is in shrinking process and with accelerating rate.

According to the data from the Statistical Office (EL.STAT), “the general index of industrial production” for November 2013 recorded a fall of 6.1%, while the decline in alteration sectors stood at 5.8%.

Particularly regarding the developments in 11 months (January – November) 2013 are:

Alteration: Recorded a fall of 1.9% (compared to fall of 4.6% the last year). The 16 of the 24 classified sectors moved in a downward trajectory. Among those that recorded decline are: Foods 5%, beverages 2.6%, textile materials 11.4%, wood and cork 25.4%, furniture 21.6%, basic metals 6.7%, electrical equipment 11.1%. Increase in production, compared with the previous year (2012), appeared on the sectors: basic pharmaceutical products and formulations 12.8%, derivatives oil and coal 5.8%, computers 25.7% etc.

C. The situation for the Greek pharmaceutical industry is to have a significant presence in discussions with leading political exponents of the interests of the monopolies of EU. Thus, no randomly is the presence of the President of the Greek pharmaceutical company Pharmathen, Vasili Katsou, who represented the sector of medicine at the meeting on Friday 11/4/2014 Greek businessmen from various sectors with the German Chancellor Merkel and Samara.

The Pharmathen, according to a recent study by Infobank Hellastat S.A., is between the first 15 Greek companies with the greatest growth the quadrennium 2009 – 2012.

D. Emphasis on 9 specific sectors of the Economy, in which the country has comparative advantages and can deliver directly positive results for the recovery of the Greek economy and job creation, is expected to give the “reboot program” of the new NSRF, for the enhancement of entrepreneurship, said the Minister of Development and Competitiveness, Kostis Xatzidakis, on 3/4/2014.

One of them is the health sector and pharmaceutical industry. This program will be the largest of the Operational programs of the new NSRF. The beginning of the implementation of this program took place in the inauguration of the new production factory of UniPharma, in an area of 14,000 m2.

E. “The Greek pharmaceutical manufacturers have been transformed in players in the international market”, stressed the President of the Panhellenic Association of Pharmaceutical Company (ECEC) D. Demos at the beginning of the first Greek Pharmaceutical Company Conference. “The Greek medicines are currently in many people’s drawers in more than 80 countries and is a solution for the pharmaceutical expenditure in many countries” highlighted and reported that at a meeting in the Ministry of Development a Vice President of the Government outside the EU, requested all imports of medical products in his country, to be made by Greek factories, trusting their quality.

2. Continued centralization of capital in 20 companies

With sales in pharmacies and pharmaceutical stores that reached two billion euro, the first “20” companies gathered cumulative share 71.2% of the total outpatient pharmaceutical market which, as mentioned above, in 2013 decreased by 10.3%, falling to the level of 2.79 billion euro. This is for the following companies: Novartis, Pfizer, Sanofi, AstraZeneca, Vianex, GlaxoSmithKline, Elpen, PharmaServ, Boehringer, Merck Sharp Dohme, Menarini, Bayer, Janssen Cilag, Abbott, Servier, Lundbeck, Bristol Myers Squibb, Roch Pharma and Winmedica.

The remaining sales of approximately 805 million euro (28.8% of the total) made from 334 other companies. This results from the data of the specialized in this sector measurement company IMS, concerning the sales of domestic pharmaceutical companies to the pharmacies and pharmaceutical stores in the country during the period January – December 2013.

3. Companies and Education

   • The pharmaceutical company Roche Hellas in cooperation with the Athens University of Economics, posed the “basis for modern executives in order to address the challenges of the digital environment in the field of medicine”. “Investing in the modern worker in today’s Greece, the two bodies proceeded to the elaboration of an innovative educational program with emphasis on digital media, new technologies and digital marketing”.

The program that takes place for the first time in the pharmaceutical sector, is called Roche – AUEB_Digital_Academy, it lasts 6 months, 100 training hours and is targeted at 25 executives of Roche Hellas.

• In “a lifelong medical education” attempts to contribute the Research and Experimental Center of ELPEN in co-ordination with the Endoscopic section of the Hellenic Society of Gastroenterology and the Hellenic Society of the Digestive System Oncology. Endoscopic techniques that were presented are the most modern knowledge in Gastroenterology, in which are trained 44 trainees doctors, according to the organizers.

Therefore, we realize once again that the absence of public education leads the companies that “care for” the training of doctors, to become the pillar of education targeting to increase their profits.

4. With the new bulletin price the participation of insured to medicines increase

According to an announcement of the Pharmaceutical Association of Attica the latest bulletin price that recently released has increased the contribution of patients for the purchase of prescribed medicines.

Unbearable cost causes to the chronically ill, who need constantly medication that are necessary for their life, the reduction of reference prices of medicines in the last bulletin price, as they are called to put their hand deep in their pocket so as to pay the difference between retail and insurance price.

• 2 billion euro will be the participation of patients to medicines in the biennium 2013 – 2014.

• After 2009 governments reduced the public pharmaceutical expenditure at an average annual rate of 15.4%, increasing simultaneously the weighted average participation of patients with an average annual rate of 15.6%.

5. The high participation cuts the treatment

More and more scientists sound the alarm for the serious health effects of patients from the high rates of participation in the treatment. The 13% of hyperlipidemic patients discontinued their medication last year, because they could not pay the amount of participation, emphasize the cardiologists.

Their own health are compelled to sacrifice the insured as they are unable to pay the amounts provided under the new compensation system of medicines by EOPYY. This is stressed, among other things, scientists of the Greek Institute of Cardiology (ELIKAR).

In a large research of ELIKAR called “month control cholesterol – estimate cardiovascular risk”, the 53% of people stated that the cost of participation in medication is large (45%) or unbearable (8%), while the 12.9% of patients abandoned the treatment due to high costs.

At the same time, this situation is even more difficult, due to the increased number of non-prescribed medicines so the entire cost burdens the patients.

Almost 1120 formulations contains the updated list of Non-Prescription Medicines (OTC), published in the Government Gazette.

Specifically, the list of FEK of 14 May the OTC amounted to 1191 while the equivalent of 7 November was 859, that is 332 additional formulations.

6. Health expenditures decreased for the period of 2009 -2012

The problems in health of insured will be intensified more year after year. The total current health expenditure in Greece fell in 9.16% of GDP, from 10.03% of GDP in 2009.

According to the data of the Greek Statistic Office (EL.STAT) the total current health expenditure in the Gross Domestic Product stood at 10.03%, 9.34%, 9.67% and 9.16% of GDP for the years 2009, 2010, 2011 and 2012, respectively.

The total public health expenditures have decreased by 2.0% in 2011 compared to 2010 and by 12.6% in 2012 in relation to the expenditures of the year 2011.

The total private current expenditure in 2011 decreased by 4.4% compared to 2010 while in 2012 was further reduced by 11.4%.

As to the contribution of the public sector in total current health expenditure recorded a decrease from 69.5% in 2009 to 68% in 2012.

7. OECD (Organization for Economic Co-operation and Development): Greece keeps the bottom position in the list of health expenditure

Our country is marginally over countries like the Czech Republic, Slovakia, Hungaria, Poland and Estonia…

One negative record after another break the social indicators in Greece.

It shows health expenditures below the average of the countries of the Organization for Economic Co-operation and Development (OECD).

According to recent data of the Organization, every Greek pays 1.800 euro annually, as funding of healthcare with the 60% to be public expenditure (state – social security funds).

The amount is for 2011 and is considered almost certain that – when new facts are resulted – will be even smaller as, in the meantime, public health expenditure have been reduced further.

The situation is much better in all other Mediterranean and Southern European countries. In Spain, 2.350 euro per citizen, with the 70% to be public expenditure. In Italy, 2.300 euro, with the 80% to be public expenditure, while in Portugal 2.000 per citizen, with the 60% to come from the state and social security funds.

Health expenditures in Greece are down from the average of OECD countries (2.500 euro per citizen) and are compared only with those of the former Eastern States.

Specifically, Greece is marginally over countries like the Czech Republic, Slovakia, Hungaria, Poland and Estonia. Indicatively, the annual expenditure per citizen in the Netherlands are 4.000 euro, with the 70% to come from the state, in Austria and Germany 3.500 euro, with equally high public expenditure.

Our country has a negative record in the intertemporal evolution of expenditure.

Specifically, while the decade 2000 – 2009 it shows a 5% increase in health expenditure per citizen, the three-year period 2009 -2011 shows a reduce of 11,1%.

This is the worst performance among the 32 countries compared and is definitely below the OECD average which is + 5%.

8. What the SFEE (Hellenic Association of Pharmaceutical Companies) says

It is worth noting here, how the President of SFEE comments on the above data:

“It is practically impossible to believe that with this way a country can ensure the minimum rate in access and the welfare of out citizens.

We will try with all our strength not to disturb society access to medicines. But we are not alone on the European continent and in the world.

The consolidated mechanisms of the international medicine market are very likely to impose changes in our country.

The formulations’ recalls is a possible scenario, while the increase in participation by patients is now a certainty…”.

“In a while, the patients not only will not be able to pay for their medicines but even to find them” foresees among other things Mr. Frouzis. And this is because, he foresees recalls of medicines from the Greek market, while he strongly believes that the participation of patients will be increased.

And in another interview, he reveals:

Question: “How important do you consider the cooperation of the pharmaceutical industry and the State in the new framework that is developed both in handle the crisis and recovery market and in perfection of the health of patients?”

Answer: “The co-operation of pharmaceutical industry and state is crucial for the formation of a more stable environment which will strengthen our investments for clinical researches, innovation, production of medicines and increasing exports and employment. The state should evaluate our contribution and how pharmaceutical companies with tens of thousands of scientists who work on them can remarkably develop specific business proposals that they will help in a real development and will contribute actively to the Greek economy. At the end, the biggest winner from this story will be the patient in Greece, who will have an access to health services that is deserved”.

Therefore, it is obvious the pharmaceutical industrialists’ attitude toward the above situation. Not a word for their profits, blackmails to the Government in order to protect their interests.

1. General meeting of SFEE (4/4/2014)

“The state should guarantee the minimum requirements of a sustainable healthcare”.

“The sector calls for immediate release of corrective bulletin of prices after considering all the objections of companies and the immediate release of a revised positive list that would include new medicines with all the approved indications”.

“The pharmaceutical companies are not just another dynamic sector of the economy. The huge total, indirect and direct contribution in the economic activity is valued at 7.55 billion euro and in 133.000 places of work that are connected directly or indirectly with our industry”.

So these are the opinions of pharmaceutical industrialists. Speaking about the need for more quick procedures for the release of new medicines (they are in the highest percentage medicines of very high cost) in fact, they are interested in increasing their gross hence their profits. We should take into consideration the fact that the employers’ reduction of contributions, made recently by law, and that of course applies to the companies of SFEE, another measure to support their profitability. The governments, over time, ensure for the entrepreneurs, the main, that the medicine is a commodity and the essence of profitability is not affected.

9. The social face of multinational companies

The last years, is taking place a concerted and sustained effort by the multinational pharmaceutical companies in the leading role and some Greek companies to show their “human” face in order to convince for their supposedly human characteristics. We see the last months their advertisements in the media, proclaiming that the first and main goal is the improvement of human life’s conditions. They are the same that, in reality, conceal the fact that people who work for them are just numbers and nothing else. Let’s see some examples:

• New “support program” for uninsured patients “launched” Roche Hellas offering to uninsured patients medicines for many serious diseases etc. total value 2 million euro.

• Hundreds of formulations covering a wide range of diseases such as hypertension, diabetes, respiratory diseases, neurological, dermatological and rheumatological diseases but also for transplantation have been donated by Novartis in “Bank of medicines” of SFEE and ISA (Athens Medical Association).

• Sanofi Hellas in the framework of co-operational Social Responsibility supports the “Bank of Medicines” of SFEE and some NGO’s that help poor families, uninsured and patients. The first free shipping medicines through the social mission clinic of ISA held on 21 February. Their total value, in wholesaler/hospital prices amount to 98 thousand euro.

• In a traditional stone-built premise of 90m² in the port of Amorgos has been constructed with the financial support of the company Pfizer, a modern gymnasium that meets with the needs of adult and children for sports at any time of the year. At this place will be able to work out all residents of Amorgos free of charge.

These “humanitarian” companies fired hundreds of their workers, the period 2012 – 2013 with the excuse of the crisis.

• The first place among the companies in health sectors as the best working environment in Greece and the second among 22 companies with over 250 workers, won Pfizer Hellas, within the framework of the institution Best Workplaces 2014.

• Taking this year the 12^th continuing distinction of the Best Workplaces 2014, Genesis Pharma remains the only company in Greece that is rewarded for its working environment from the beginning of the institution, in 2003, until now.

• Significant distinction for its working environment ensured for the second continuous year Roche Hellas in the competition “Best Workplaces 2014”, winning the third place among health companies overall and the 8^th place in the category of enterprises with 50 to 250 workers.

Let’s see though what Best Workplaces are. It is a research that “highlights” companies with the “best working environment”. The objective is to convince workers that they work for an ideal company. Indeed, some of these (e.g. Pfizer) played a leading role in hundreds of layoffs that have been made in pharmaceutical companies the last two years.

“In a very difficult period for the country, this company continues to invest in Greece” “The Administrator” works consistently towards its employees as regards the salaries and other perks”, “I could write pages of what I feel for my company”.

All the above that seem to have told by owners, big-shareholders and business managers, attributed to workers of 54 companies that participated in the annual research “Best Workplaces” evaluating with their answers in an anonymous questionnaire their working environment. But behind the window of business – model is hidden the effort to create another “pattern”: that of a worker that indentifies his interests with the interests of employer and considers as his own affair the profits of enterprise. The worker that faces the company for which he works as a “family”, in which he and his colleagues are shared the exploitation, but not the profits, that ending in the employer’s pocket.

The whole exercise is aimed at workers and seeks their conscience with double way. From the one hand, propagandize that there are “good employers”, that is to say enterprising associations that “care” for their workers, with a number of ways and become “luminous examples” in a period of rapid deterioration of working conditions for the majority of working class.

From the other hand, it brings in to light the example of “right” workers who show their gratitude for what the company provides, understanding for the company’s difficulties and willingness to support it. This impress also the reports of workers as following: “The culture and values of the company, predispose you to work for it, not as a worker but as if you own the company”.

This intervention aims not only to the personnel of these companies but to all workers. The goal is the worker to see the reality through the prism of employer’s interests, to think and behave in a similar way, to abstain from the organization, the collective struggle and the claim against the employers, as required by the class oriented interest.

To convince workers that they don’t have the class of capitalists that enriches from the exploitation of their work against them, but just their employer who is to blame for the loss of their rights. They even can feel gratitude sometimes because they are paid on time or the employer smiles at them or maybe he offers them an excursion.

The enterprises that are included in the list of companies with the best working environment, advertise a range of perks to their staff. Like pension programs, health care programs, playschool allowances, educational leave etc.

And with regard to these perks, the setting of “working paradise” can easily be overturned with a closer look at reality. In practice any privileges not only concern all workers but they go hand-in-hand with the crushed working conditions faced by many of them.

As for the data which are positively evaluated, concern more than ever the basic obligations of the company towards its workers. Thus, the regular and on time payment of wages, the payment of overtime, the compliance with working time, are converted from self – evident rights of workers, elements that constitute a “good working environment” for which the employers should take the credit.

10. Activities of companies

• Investments in foreign markets, where the environment guarantees highest performance and effectiveness, plans Sarantis group for 2014. Predictions for increasing sizes for 2014, expressed the enterprise based mainly on the performance of international affiliates. Exploring new markets in Poland and Czech Republic. In addition to possible buyouts, that they would yield substantially in 2015 and not budgeted in this year’s prediction. The Group estimates that in 2014 its international affiliates will continue to perform, providing an increase in the level of sales by 7%. Although the Group does not plan investments in the internal market, though it completes within May the movement of production of cosmetics in Greece (that cumulatively represent gross over 25 million euro) while the unit can receive new production volume, since the new acquisitions end up positively for the group.

• In the 8^th position in the annual list of the most valuable companies in the world in the sector of pharmaceutical products classified the recognized magazine Fortune, the biopharmaceutical company AbbVie. AbbVie won the honours after just over a year of operation, aw an independent company is a global biopharmaceutical company, which was established in 2013 after its separation from the Abbott Laboratories Company’s. Its mission is to utilize its experience, the dedicated personnel and its unique approach to innovation, with the aim of developing advanced treatments that will cover some of the most complex and serious diseases in the world. Globally, the AbbVie employs approximately 25.000 workers (100 of them in Greece) and operates in more than 170 countries.

• Net profit of 17 million euro, despite the reduction of the price series of medicines in the last year, recorded in 2013 the American pharmaceutical capital company Pfizer Hellas, which last year in the Greek outpatient pharmaceutical market ranked first on the basis of sales volume (13,1 million pharmaceutical packaging) and the second position on the basis of the value of sales. Pfizer Hellas, employs more than 500 workers.

• With the award “employment growth”, ELPEN was honoured in the framework of business excellence awards “The Most Admired Enterprises”, in annual event “Diamonds of The Greek Economy 2014 – The healthiest growing Businesses in the Country” held on Thursday May 22.

• The Greek pharmaceutical industry ELPEN, created new employment opportunities and business development, thanks to extrovert development orientation, the constant investment in Research and Development in the modern Research and Experimental Centre and the expansion strategy, through strong partnerships worldwide. As a result of this process, besides the support of country’s economy, was the creation of new jobs and the enrichment of human resources of ELPEN with quality executives. The 840 workers of the Group, serving the growing needs both in domestic market, as well as the export activity of the company in 27 European countries and 60 countries worldwide.

• The strengthening of exports in five years of crisis led to an increase in the profitability of the Demo company by 40%. Aiming at its presence in 75 countries in the world, the purely Greek pharmaceutical company DEMO, founded at the beginning of the year the first branch in Germany, while it already operates a branch in China from the year before. The Administration’s goal of company is to have a presence in 7 European countries, in the nextfive years. The company already has 800 product licenses in more than 45 countries. The annual gross of the company reaches 105 million euro (2013), while is a leader in exports between companies of the country, as it exports the 80% of its production (30-35% in value).

10. IOBE (Foundation for Economic & Industrial Research) STUDY FOR THE PHARMACEUTICAL COMPANY

Development guide is the pharmaceutical industry in Greece, which moved upward, despite the recession in the alteration sector, according to the study data of IOBE, that is presented in the framework of health forum , the Greek Presidency of the EU held in Athens May 12 -14.

The study of IOBE: “Development strategy for the sector of pharmaceutical company”, that is presented by the Assistant Professor EMP and Scientific Associate of IOBE, Angelos Tsakanikas, it indicates that the total impact of the sector in the gross domestic product is estimated at 7.5 billion euro, that is about 3.5% of the country’s total GDP in 2010.

In Greece, the 18% of the total expenditures for Ε&Α ?isperformed by the sector of medicine.

The economic footprint of production and distribution of pharmaceutical products appears strong and in the employment, with the number of jobs associated with the sector to amounted to 132 thousand.

At the same time, the production of medicine records the second highest average annual increase in gross value added compared to other alteration sectors for the period 2000 – 2010.

In terms of value added in the sector tripled its contribution to the total of domestic processing of the previous decade, receding slightly in 2010 (approximately 9%) and despite the decline it remains the 7^th highest in the total of domestic processing.

In Greece the investments of the pharmaceutical sector per worker is nine times higher than the corresponding figure of processing, with the index to rank the first position in relative ranking among European countries.

Moreover, it is the 4^th sector in exports after the oil production and refining sectors, production of precious and other metals and clothing construction and other related accessories.

In the same forum, the president of SFEE Mr. Frouzis mentioned the main goals of the new strategy that is proposed for the medicine and that specifically relate to:

• Increase investment in research and development over 10 % of the turnover of enterprises in the sector.

• Promotion of Greece in centre for conducting clinical studies. Increase number of submission and vesting patents of pharmaceutical substances.

• Ensuring immediate patients’ access to innovative treatments.

• Doubling investments in production units in Greece. Improving competitiveness of Greek medicines – increase in exports by 50%. Networking academic/research centres with the industry.

• Doubling employers in pharmaceutical industry.

Thepresidentof SFEEurgedthegovernment“to givefurtherdevelopment incentives, and to encourage the promotion of innovative investments that will bring increase of employment, improving of the competitive position of the country, increase of exports and influx of new private capital that will strengthen the domestic industry as well.

The pharmaceutical industrialists, in order to increase their profitability, through their President also requested a series of tax reductions, such as “remission of tax revenue from innovation, review of the framework for tax relief for expenditure on research, development and technological innovation, application of a reducedrate of taxon profits fromthe exploitationof patentsandother innovations as well as exemption from social security contributions especially for young scientists”.

Athens 8.7.14