RAFARM Vice President Aris Mitsopoulos refers to the positive impact of the Greek pharmaceutical industry on the GDP of our country, to the contribution of Rafarm, a historic and pioneering industry in the pharmaceutical sector, the first to spread its wings for exports to the US, to its significant investment program of €120 million, but also to the obstacles that the excessive amount of mandatory refunds places on businesses.
1. The pharmaceutical industry has a positive footprint in Greece and the EU. What is your view on the changes in the EU pharmaceutical market, and how will they affect Greece?
The Greek pharmaceutical industry serves as a driving force for the economy while ensuring the country’s medicine sufficiency. According to a recent study by IOBE (Foundation for Economic & Industrial Research), the sector contributes €2.8 billion to the GDP. Moreover, for every €1,000 invested in domestically produced medicines, GDP increases by €3,420. Exports from this sector continue to grow significantly, with Greek pharmaceutical products ranking fourth among all manufacturing exports. Additionally, the sector directly employs 10,800 people, supports 13,400 jobs in related fields, and generates 29,000 jobs through consumer spending derived from wages.
In the EU, the pharmaceutical industry is a vital economic pillar, representing 5% of the value added to the economy by all industries and 11% of EU exports. The sector directly employs approximately one million highly skilled and well-compensated professionals (937,000 in Q4 2023), with 15% of them engaged in Research & Development.
Over recent years, the pharmaceutical sector has undergone profound transformation across multiple levels. The EU, having lost its competitiveness by moving in the wrong direction for decades, now has a unique opportunity to reverse course. By accelerating efforts, attracting production investments, and focusing on resilience and autonomy, the EU can regain its edge. This requires immediate increases in funding, reduction of over-taxation, and enhancement of investment incentives.
For the Greek pharmaceutical industry, the EU’s new pharmaceutical policies pave the way for further development, while the Recovery and Resilience Facility (RRF) provides critical investment support. Greek pharmaceutical companies are strengthening their international presence, entering new markets, and fostering partnerships with global collaborators. The aim is clear: to establish Greece as a key hub for pharmaceutical production and development in Europe, contributing significantly to the national economy.
2. You mentioned that major investments are driven by companies’ own funds, RRF support, and the vision of bold leaders who take risks to move forward. How bold is this step given Greece’s current challenges and high clawback rates?
Investing in today’s challenging economic landscape, compounded by high clawback obligations, is indeed bold. However, it remains a strategic choice for long-term growth and establishing a stronghold in international markets.
The Greek pharmaceutical industry has consistently demonstrated its willingness to take risks, even under the most adverse conditions. During the financial crisis, we invested with our own funds and moved forward despite the inherent risks. While we continue to invest, we call for reforms to alleviate the suffocating burden of clawbacks and rebates, which create unsustainable conditions in the domestic market.
Nevertheless, we invest with a clear plan and strategy, recognizing the long-term opportunities for sector growth both in Greece and abroad. This bold step is our natural course—rooted in vision and determination. Beyond the Recovery Resilience Fund, our commitment lies in producing high-quality medicines and reinforcing our position in the global market, turning challenges into opportunities.
3. Despite the challenges, strict clawbacks, and Greece’s pharmaceutical policies, RAFARM has one of the larger investment programs in the country, with a focus on R&D. What is the scale of these investments, and what capabilities does your new research center offer? Will the slight increase in investment clawbacks make a difference?
RAFARM is implementing an investment program of €120 million (2021–2027), with €45 million allocated to CAPEX and €75 million to the development of new products, introducing innovation, and enhancing expertise.
The new facilities feature manufacturing plant fully equipped to meet modern industry standards, cutting-edge quality laboratories, and state-of-the-art research center. We are investing in the development of sterile, high-tech products, fostering innovation through collaborations with renowned research centers, universities, and start-ups to enhance our specialization and expertise. Notably, 20% of our developments involve sterile, value-added products, with a clear focus on introducing innovation. RAFARM is actively developing both generics and four innovative ophthalmic products through partnerships with research institutions and universities.
While the slight increase in the amount of clawback offsetting reform and other policies supporting the Greek pharmaceutical industry are steps in the right direction, Greece and Europe still lack the tools necessary to support production and development effectively. Strengthening incentives unlocks investments, drives growth, and enhances the footprint of the Greek pharmaceutical sector—not only in production but also in development. More importantly, it creates added value in expertise and specialization, transforming the Greek pharmaceutical industry into a valuable asset for the country from both economic and scientific perspectives. With the right dynamics, Greece can competitively integrate into the global pharmaceutical ecosystem for development and production.
4. Is it easy to strengthen the R&D team in Greece and recruit specialized scientists? Is there a connection between educational institutions and the pharmaceutical industry?
Attracting specialized scientists in Greece remains a challenge, primarily due to the limited connection between educational institutions and the pharmaceutical industry. However, the Hellenic Association of Pharmaceutical Companies (PEF) develops and promotes educational programs aiming at cultivating the skills required for careers in the sector. Simultaneously, RAFARM fosters partnerships with universities and research institutions, bridging the gap between education and the pharmaceutical industry and contributing to the strengthening of our R&D team.
5. Fifteen years ago, RAFARM decided to enter the world’s largest market: the United States. How was the decision made to tackle the US market, given its regulatory complexities and competitive pharmaceutical industry?
Since 2009, we have aimed to become a global player, and entering the world’s largest market—the United States—was essential to achieving this goal. The decision was far from easy, considering the numerous challenges, such as differing regulatory frameworks and the highly competitive nature of the US pharmaceutical industry.
We began by staffing our teams with experienced professionals capable of securing the critical milestone of FDA approval. Our R&D team was strengthened with highly skilled scientists to develop advanced, high-tech products. Concurrently, we reorganized our structure, initiated digital transformation, and adopted structured data management.
To remain at the forefront of developments, we established new automated production lines and upgraded our technological infrastructure for sterile product manufacturing. We formed strategic partnerships to support regulatory processes, and co-founded Aggrega alongside Bluepharma (Portugal), Substipharm (France), and Welding (Germany) to develop products targeting the US market.
All these efforts culminated in achieving FDA approval in 2017—a significant milestone. Today, exports to the U.S. remain a key pillar of RAFARM’s growth.
6. RAFARM ranks among Greece’s largest pharmaceutical companies with substantial export volumes. What progress has been made in exports, and what are your future goals?
RAFARM’s products are exported to 60 countries, and exports have more than doubled over the past five years. As mentioned earlier, one of our key growth pillars is the US market, where six of our products, developed and manufactured in Greece, are already available.
The year 2024 marked another milestone, with two additional FDA approvals for ophthalmic products, and we expect five more approvals in the near future. We also launched our first product in China in 2024, opening new opportunities in this market.
These achievements are not coincidental but the result of successful partnerships, hard work, and an unwavering commitment to quality. Our next goal is to strengthen our expertise in developing sterile generics (primarily ophthalmic and injectable) and to launch innovative products. Innovation is driven through collaborations with research centers and universities, focusing on four groundbreaking products. Currently, one is in Phase II clinical trials, another in Phase I, and two are in preclinical development.
7. After 50 years in the Greek market, what do you attribute RAFARM’s success and continuous growth to?
RAFARM’s success and ongoing growth stem from a combination of strategic business decisions, enduring values, and our dedicated workforce. Since the company’s foundation, we have invested in quality, reliability, and innovation, building long-term relationships of trust with our partners both in Greece and internationally.
Our focus on product quality, adaptability, and a strong export orientation, coupled with the expertise and commitment of our people, has been critical in our growth.
Our robust export activity is built on steady steps and partnerships with major global players. Continuous training enhances our know-how, and our ability to adapt to market challenges demonstrates that we are a company in constant evolution. By identifying opportunities and investing in our people, infrastructure, and technology, we are always moving forward.
