It’s business stupid
Healthcare is probably the second biggest business opportunity after sustainable energy. We want to grow old healthy, and we are willing to spend a few bucks on it. And not just in the Netherlands where the market potential is only 1% of the developed world. We invented the microscope, the artificial kidney, bone marrow transplants, and played a prominent role in the improvement of modern imaging techniques. But with the take-over of Organon by Schering Plough and the subsequent take-over of Schering by Merck the outlook for the classical Dutch pharmaceutical industry is bleak. However, new companies are being set up in the healthcare field that could develop into attractive businesses.
Since the discovery of the gas reserves in Groningen, the Netherlands has pumped 211 billion Euros out of the ground, money that should have been wisely spent to strengthen our global competitive position. Since 2005 a fraction of this money finds its way into the life sciences. Through CTMM, BMM, NGI, Parelsnoer and TiPharma, a few hundred million Euros per year are invested in public-private initiatives in the biotechnology sector. One would think that these investments are expected to yield tangible innovations and marketable healthcare products or services. What a shame then that by imposing certain requirements for reimbursement, Dutch law actually excludes innovative healthcare products. So, it turns out that we pay lip service only with our so-called commitment to R&D and life sciences. Because once a product is ready for the market, we’re not willing to pay for it. If we are really serious about creating a knowledge economy in the Netherlands, and have decided that healthcare should be an integral part of it, which I believe we have, this attitude must change.
Surely that will not be enough. For healthcare innovation really to take root, patients must find their voice and demand only the best; physicians should be stimulated to accept change sooner and learn how to apply innovation faster; companies should bring innovation based on market needs, rather than coincidental research results; and government should break down market entry barriers for evidence-based medical innovations. If we succeed in aligning all market participants, we will create the right environment for a growing healthcare industry.
As to costs, we should accept that an initial incremental increase in healthcare costs is bound to go hand in hand with the adoption of innovation. I am certain that the future will show that it is a small prize to pay for an industry that truly has the ability to shape the knowledge economy that we so much aspire to and that will reward us with the rich dividends of a healthier, more productive and advanced society.
Bas van der Baan
Director Business Development of Agendia
