Dear G7 Governments,
On behalf of the innovative pharmaceutical industry we represent, we would like to convey ahead of the G7 Leaders’ Summit, our commitment to continue partnering with you through the Canadian G7 Presidency to unlock the full potential of our sector as a strategic asset in your countries. The pharmaceutical industry plays a unique and vital role as a partner in driving health innovation to improve patient outcomes, strengthening health system sustainability, boosting economic growth and sustainability, and supporting national security. The G7 is a key forum for unlocking this potential. To achieve this, there are three areas of focus that should be central to the G7 deliberations over the coming months:
- The strategic imperative of investing in healthcare. This includes the early adoption of medical innovation, which can transform lives, strengthen healthcare systems, and contribute to socioeconomic growth through a healthier and more productive population.
- Strengthening global health security. This includes supporting a global health architecture that fosters investment in the innovation needed to prepare for and respond to the biggest health challenges we face.
- The innovative pharmaceutical industry as a catalyst for economic growth and resilience. This includes championing sustainable research and development (R&D)ecosystems that support innovation and are built on predictable and robustintellectual property (IP) frameworks, open trade, and the removal of tariffs and nontariff barriers, including export restrictions.
To achieve these ambitions, health must be treated as a long-term strategic priority with clear short-, mid- and long-term impacts on health, security, and the economy. Putting health at the core of the G7 leaders’ declaration and recognizing it as a key economic driver, is an opportunity to keep health high on every G7 government’s agenda. Hosting a G7 Health Ministerial this year further reinforces this priority.
Investing in health: A strategic imperative for G7 nations
To build systemic resilience and foster economic stability, strengthening healthcare systems is essential. This includes the early adoption of and access to medical innovations through regulatory and marketing approvals, as well as value-based reimbursement. With the UN High-level Meeting and Political Declaration on non-communicable diseases (NCDs) expected in September, there is an opportunity for the G7 to unite around tackling NCDs like cancer, diabetes, obesity, cardiovascular disease, respiratory diseases, and neurological conditions, which are responsible for 75% of deaths worldwide. There are more than 9,600 medicines focusing on NCDs and mental health in various stages of clinical development globally, driven by pharmaceutical companies, alongside biotech companies, academic institutions, and medical research charities.
Pharmaceutical innovation remains at the heart of making progress against NCDs. It is critical that the final declaration supports continued innovation, mobilizes investment in stronger healthcare systems, drives access to proven medical innovations, and delivers accountability and high standards across all relevant sectors of government.
In advancing this agenda, prevention, early diagnosis, and disease intervention must be recognized as foundational pillars of resilient health systems. As part of this approach, supporting preventative healthcare systems – including through robust adult immunization programs – offers substantial health and economic benefits. It has been demonstrated that adult immunization can return 19 times their initial investment, when benefits to individuals, health care systems, and wider society are considered. Innovative medicines and vaccines can reduce long-term healthcare expenses, enhance workforce productivity, and improve life expectancies. Adopting a prevention mindset, with immunization as a cornerstone, in addition to treatment, can further alleviate growing pressures on health systems and economies.
The innovative pharmaceutical industry: A trusted partner for global health security
The G7’s global leadership is vital for addressing health crises at an early stage and preventing their escalation into global health security (GHS) threats. As the B7 Communique states, “GHS requires strong systems to prevent, detect, and respond to cross-border threats.” The innovative pharmaceutical industry is a key GHS partner, including working alongside G7 nations to enhance pandemic preparedness and response (PPR), biosecurity, and the fight against antimicrobial resistance (AMR). In this same spirit, tackling communicable diseases also requires political commitment and continuous investment.
As the Science 7 recommends, “invest in innovative solutions.” Medicines, vaccines, and diagnostics will remain central to our collective prevention of and response to future pandemics and other biothreats. The industry remains committed to investing in the R&D that enables us to be as prepared as possible when the next pandemic or health emergency hits. To enable R&D, it is essential that G7 countries foster a life-science environment that supports continued investment in innovation and drives scientific breakthroughs. Key measures include strengthened global supply chains; removal of trade barriers; robust IP rules and protections; responsive, resilient and predictable regulatory systems; and value-based frameworks that appropriately reward innovation.
At the same time, we continue to advance the fight against AMR. Drug resistant microbes are turning routine infections into deadly threats and are undermining the foundation of modern medicine. Significant strides have been made through past discussions at the G7, but sustained momentum and coordinated efforts to implement effective pull incentives across all G7 countries remain critical to address this global health challenge.
Catalysing economic growth and resilience
It is estimated that about one-third of economic growth in developed countries over the past century can be attributed to improvements in health. Advancing health as an economic driver requires coordinated, and sustained investment across sectors. The innovative pharmaceutical industry remains a strategic sector that can drive economic growth, including by creating jobs and contributing to skills and productivity. In 2022, the pharmaceutical industry contributed USD 2.3 trillion to global GDP, with nearly half of this impact stemming from G7 countries. For every dollar generated directly, an additional USD 2.04 was created through supply chain and consumption effects. R&D alone accounted for USD 227 billion— 30% of the industry’s direct GDP contribution. Industry supports 74.9 million jobs globally, including 7.8 million people directly employed, often in roles that require specialized training, technical skills, and education and over 67 million through indirect and induced effects.
Maximizing these economic drivers for G7 countries requires an environment that allows the sector to grow.
With an increasingly competitive global backdrop, the life sciences sector plays a key role in contributing to G7 countries’ economic strength, which in turn drives resilience. A healthy pharmaceutical industry is not only an important economic driver but also contributes to improved health outcomes that enhance productivity and further boosts the economy. To sustain this momentum, it is essential to champion sustainable R&D ecosystems that support innovation and that are built on strong IP frameworks, open trade, and the removal of tariffs and non-tariff barriers. The G7 remains a unique platform to unlock further potential for impact, and we remain available to work closely with you to reflect this shared commitment in relevant G7 communiqués.
Conclusion
The innovative pharmaceutical industry’s contributions to health, economic growth, and national security can significantly help advance the G7’s objectives. This can be achieved by strengthening partnerships and investment in resilient health systems, promoting a policy environment that rewards innovation and supports open trade, and advancing policies that attract investment and drive growth in the life sciences sector.
Health challenges – including NCDs, AMR, and the increasing risk of pandemics – pose a severe threat to G7 and global economies, leading to significant human and economic losses. An increasing amount of evidence demonstrates these economic losses due to illness, and conversely, highlights the immense value of innovation in addressing the related productivity loss and increased costs to healthcare systems and society. Innovation is paramount in driving progress that mitigates these burdens and catalyzing economic growth and resilience. Therefore, ensuring optimal conditions for innovation, including robust incentive frameworks (such as AMR pull incentives across all G7 nations), unconditional access to pathogens and genetic resources, and enhanced prevention, screening, early diagnoses, and value-based reimbursement, is critical to effectively tackle these huge global health challenges.
As G7 governments navigate multiple geopolitical challenges, we ask G7 Leaders to ensure that health remains a priority, and to convene a meaningful agenda on health this year, reaffirming the previously agreed health commitments and investments. The innovative pharmaceutical industry remains strongly committed to working in partnership with G7 countries, including the G7 Health Working Group, to advance an agenda that positions health as a strategic driver for not only better health outcomes and GHS, but also as a key driver of economic growth and resilience.
