Summary
Belgium's pharmaceuticals market is characterised by high per capita spend, low generic penetration and widespread cost-cutting measures. Because it is a mature market, growth opportunities are limited, but an informed patient population is driving the uptake of the latest technologies and medications. The value of the pharmaceutical market is currently US$4.7bn, and 5% y-o-y growth is forecast through to 2010.
Many multinationals use Belgium as an international distribution centre, meaning that import/export trade in pharmaceutical products far exceeds the value of the domestic market. In addition, the country is a major manufacturing hub, particularly for biopharmaceuticals. Both GlaxoSmithKline Biologicals and Solvay have vaccine production capabilities in Belgium.
The adjusted Business Environment Rankings for Western Europe reveal that Belgium places seventh, just ahead of the Netherlands. The country scores highly for low political and economic risk and also for market growth potential, but is let down by market size and domestic sector threat.
On the back of robust first half 2006 financial results, Belgian pharmaceutical and chemical group Solvay intends to expand its reach in its faster growing markets, specifically in Asia, NAFTA and in Mercosur - a South American free trade association. Meanwhile, compatriot firm UCB Pharma 's potential Crohn's disease blockbuster Cimzia(anti-TNF alpha antibody) is on track to be submitted for approval in the first half of 2007. If approved and launched, the drug will represent a major advance in the treatment of the debilitating disease.
A reference pricing system was introduced in 2001 to encourage the wider dispensing of generic drugs. Under the scheme, pharmaceuticals are reimbursed on the basis of the price of the generic drug, which was initially set at 16% less than that of the equivalent branded product. Over time, the Belgian Government has progressively reduced the reference price from 84% (until July 2002), 80% (until January 2003) to 74% of the price of the originator medicine (at July 2005). The rate now stands at 30% below that of the equivalent branded product.
Key Benefits of Report
- Rely On Our Independent 5-Year Forecasts As A Benchmark
to test other views - a key input for successful budgetary and strategic business planning.
- Target Business Opportunities & Risks
through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments
- Exploit Latest Competitive Intelligence & Company SWOTS
on your competitors and peers through company rankings by sales, market share and ownership structure – includes multinational and national companies.
Scope of Report
Executive Summary & Industry SWOT
An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI’s forecast analysis, and taken together with BMI’s Economic and Business Environment SWOTS, give a complete overview of market climate.
Market Summary
Outline of market characteristics, growth factors, leading therapeutic segments and a competitivness of the market.
Regulatory Regime
Guide to and analysis of country intellectual property developments and pricing & reimbursement issues, which constitute the regulatory make-up of the market.
Industry Developments
Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D and patent legislation.
5-Year Industry Forecast
5-Year Forecasts to end-2010 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- Drug market expenditure (US$bn); drug expenditure per capita (US$); as % of gdp
- Prescription drug market (US$bn)/as % of total market; sales by alimentary tract/metabolism; antibiotics, cardiovascular, central nervous system, oncology, musculoskeletal and respiratory system
- OTC market (US$bn)/as % of total market (sales by analgesic, cough and cold, digestives, skin treatments, vitamins and minerals)
- Generics market (US$bn)/ as % of total market
- Health expenditure (US$bn, % of gdp and per capita); public sector health expenditure as % of total; number of hospitals; beds, hospital admissions, doctors, births and deaths per 000 population
Forecasts based on bespoke BMI economic modelling, using historical data sets of macroeconomic and industry variables to derive rigorous statistical relationships, anchored in advanced linear regression techniques.
5-Year Macroeconomic Forecasts
BMI forecasts for all headline macroeconomic indicators, including:
Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt
Competitive Landscape & Profiles
Intelligence on the market position of major MNC power houses and indigenous companies. BMI profiles key research-based companies. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.
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