The impact of pharmaceutical innovation on longevity and medical expenditure in France, 2000-2009

- Pharmaceutical innovation increased longevity (mean age at death) by 0.29 years (3.43 months) in France during the period 2000-2009-about one-fifth of the total increase in longevity.
- Longevity is much more strongly related to the number of drugs than it is to the number of drug classes.
- New drugs introduced during the period 1995-2004 reduced the number of hospital days in 2009 by about 11%.
- The baseline estimate of the cost per life-year gained from the introduction of new drugs is about $8100.

Longitudinal, disease-level data are used to analyze the impact of pharmaceutical innovation on longevity (mean age at death) and medical expenditure in France during the period 2000-2009. The estimates imply that pharmaceutical innovation increased mean age at death by 0.29 years (3.43 months) during this period-about one-fifth of the total increase in longevity. This estimate is smaller than those obtained in previous studies of Germany and the U.S., but the rate of adoption of new drugs was lower in France. Longevity is much more strongly related to the number of drugs than it is to the number of drug classes.Pharmaceutical innovation during 2000-2009 is estimated to have increased per capita pharmaceutical expenditure by $125 (26%) in 2009, but most (87%) of this increase was offset by a reduction in hospital expenditure. The baseline estimate of the cost per life-year gained from pharmaceutical innovation in France during 2000-2009 is about $8100. This estimate is fairly close to the mean of estimates obtained ($10,800) from U.S., German, and Australian studies.