The Pharmaceutical Market: Austria

Summary

Espicom's in-depth pharmaceutical market reports are ideal for executives wanting to understand the key drivers in pharmaceutical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, pricing/reimbursement, intellectual property, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data for raw materials and finished products and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year.

The pharmaceutical industry in Austria is characterised by small and medium sized companies. It is estimated that half of the companies employ up to nine people. Only 10% are large companies with more than 250 employees, the biggest manufacturers being Baxter, Boehringer Ingelheim and Biochemie. The nine largest pharmaceutical manufacturers were responsible for 84% of the total industry turnover. Currently there are approximately 220 pharmaceutical companies based in Austria. This includes 24 manufacturing companies but also companies only trading with pharmaceuticals.

One of the main challenges facing the Austrian pharmaceutical system is, as in many other countries, the rising pharmaceutical expenditure. The major reasons for the growing costs are an ageing population and the uptake of new, more expensive pharmaceuticals.

In 2004, the government announced that the annual growth rate of pharmaceutical reimbursement expenditure was to be limited to approximately 3-4%. This is to be achieved by a reform of the reimbursement system. According to a governmental declaration in spring 2007, the existing fixed co-payment per prescription shall be capped by an annual maximum. This maximum co-payment shall be introduced by 1st January 2008 and should be about 2% of the annual income of a patient.

In an effort to streamline public services, Austria has been one of the first European countries to issue an electronic card that contains patient information. It is hoped that this will allow a greater degree of flexibility within the healthcare system.

The majority of pharmaceutical imports originated within the EU in 2005, Germany being both the leading EU supplier and leading overall supplier. The vast majority of pharmaceutical imports are in the form of retail medicaments. Germany was also the leading EU recipient of Austrian pharmaceuticals in 2005, Switzerland was the leading overall recipient. The research and development of pharmaceuticals in Austria is not a large sector of activity or employment, consequently expenditure is amongst the lowest in Western Europe.

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