Summary
The pharmaceutical market of the Netherlands is characterised by high generic penetration, a recently introduced health insurance system and the dominance of a single domestic player, according to our newly-published "Netherlands Pharmaceuticals & Healthcare Report". The future of the country's healthcare system will be dictated by prudent cost-cutting measures that aim to cap spending at current levels. However, given the emergence of innovative, and therefore expensive treatments, this goal will be hard, if not impossible to achieve. Additionally, the combination of an ageing population and a contraction in employment numbers will further stretch any fiscal plans. As such, BMI is forecasting that annual spending on healthcare will reach US$76.5bn by 2010, a 12% increase on the 2005 figure.
Generics currently account for nearly 18% of the pharmaceuticals market in value terms, primarily due to informed prescribing by general practitioners. With the government continuing to focus on generics as part of its cost-containment policy and with a significant number of major drugs due to come off-patent, the generics market can be expected to continue to perform strongly in the short term, gaining market share at the expense of branded medicines. In 2010, generics are forecast to account for over 52% of the total market in volume terms.
In an effort to reduce bureaucracy and therefore save money, public and private insurance schemes were integrated under a new health insurance system - the Basisverzekering - at the beginning of this year. The premiums are based on a per capita, risk-independent calculation instead of a previous percentage contribution, which is seen as a more egalitarian method of payment. It remains to be seen what the effect of the new system will be on total healthcare spending given it nascent state.
The adjusted Business Environment Rankings for Western Europe reveal that the Netherlands has maintained its eighth place, behind neighbouring Belgium. The main reason for such a low position is the country's small population. However, the Netherlands scores well for political and economic risk, and will remain an attractive investment location due to a favourable operating environment.
The domestic market is dominated by the Akzo Nobel group, which recently revealed that it is to spin off its Organon drugs business as a separate entity in early 2007. The decision reinforces the current trend for hybrid companies to de-couple and The report expects the company will perform better on its own.
R&D is frequently mentioned as one of the Netherlands' main strengths. Demonstrating this, Nobilon - set up by Akzo Nobel in 2003 to explore opportunities in the field of human vaccines - and Coronovative , a spin-off from the Dutch Erasmus Medical Center, formed a collaboration in June 2006 to discover new viruses that can cause a range of diseases.
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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