Could innovative medicines save more than they cost? What this new report means for lung cancer
Healthcare spending is often discussed in terms of cost. Governments face difficult decisions about how to fund new treatments while managing growing demand on health services.
A new European report suggests there may be another way of looking at the question.
Researchers estimate that every €1 invested in innovative medicines generated an average of €5.67 in wider social and economic benefits, including fewer hospital stays, improved productivity and reduced premature mortality across 29 European countries.
While the report looks at several major disease areas rather than lung cancer alone, it raises important questions about how Europe measures the value of medical innovation.
What did the report find?
The report, commissioned by the European Federation of Pharmaceutical Industries and Associations (EFPIA) and carried out by researchers at the WifOR Institute together with Professor Frank R. Lichtenberg of Columbia University, examined the impact of newer medicines across 29 European countries.
It estimated that between 2014 and 2024:
Every €1 invested in innovative medicines returned an estimated €5.67 in wider social and economic benefits.
Additional investment of €11.67 billion was associated with €66.18 billion in measurable benefits.
Around 20.9 million hospital days were avoided.
Approximately 1.83 million years of life lost before the age of 85 were avoided.
The researchers estimate these benefits came from a combination of reduced hospital use, increased productivity and fewer premature deaths.
Looking beyond the medicines budget
One of the main messages of the report is that medicines should not be viewed only as a healthcare expense.
The authors argue that newer medicines can have wider effects across society by helping people stay healthier for longer, reducing pressure on hospitals and enabling more people to continue working or contributing to family and community life.
Rather than measuring only the price of medicines, the report attempts to estimate their wider economic impact.
What does this mean for lung cancer?
Lung cancer treatment has changed dramatically over the past decade.
Advances in biomarker testing, targeted therapies and immunotherapy mean treatment is becoming increasingly personalised. Many people now receive therapies matched to the biology of their cancer rather than a one-size-fits-all approach.
As more innovative treatments become available, decisions about access become increasingly important.
If effective new medicines reduce hospital admissions, help people maintain their quality of life or improve survival, their value may extend beyond the medicines budget alone.
The report does not answer that question specifically for lung cancer, but it provides another perspective for policymakers considering how innovation should be assessed.
Access still matters
Innovation can only benefit people if new medicines are available when they are needed.
Across Europe, access to innovative medicines remains unequal, with availability and waiting times varying considerably between countries. Even after a medicine receives regulatory approval, reimbursement decisions and national funding policies can delay access by months or even years.
For people affected by lung cancer, timely access to effective treatments remains just as important as the development of new ones.
A balanced view
Like all research, this report should be considered alongside its funding and methodology.
It was commissioned by EFPIA, the organisation representing the research-based pharmaceutical industry in Europe. The researchers also note that their estimates are conservative because they use medicine list prices rather than discounted prices and do not include every possible health and economic benefit.
The report does not argue that every new medicine automatically represents good value. Instead, it explores whether healthcare investment should be assessed more broadly by considering hospital use, productivity and longer-term health outcomes alongside medicine costs.
As Europe continues to invest in precision medicine and targeted treatments, that is likely to remain an important discussion for healthcare systems, policymakers and everyone affected by lung cancer.
Source
How innovation drives health and growth in Europe: Assessing the Return on Investment of innovative medicines(WifOR Institute, commissioned by EFPIA, June 2026).