Netherlands Pharmaceuticals and Healthcare Report Q4 2008

Summary

Growth in the drug market should be solid over the forecast period, especially considering the Netherlands is a mature market. Pharmaceutical expenditure was US$7.94bn in 2007, but should rise to a value of US$9.5bn in 2012, representing a real growth rate of 2.8% per year. However, growth will slow towards the end of the forecast period as government cost-cutting initiatives begin to bite, such as the new preferential price policy for generics.

Market growth will be constrained by low medicine consumption rates. A recent report from the Dutch Pharmaceutical Core Data Foundation (SFK) has highlighted the fact that spending on medicines is particularly low in the Netherlands, compared with the other Western European countries. According to the SFK, average medicine consumption was 12% to 60% higher in neighbouring countries in 2006.

Meanwhile, local players are already being impacted by generic price cuts introduced on June 1 2008.

While announcing its Q208 results on July 25 2008, OPG - the countrys leading wholesaler - said that it was reducing its full-year earnings forecast and had booked a goodwill writedown of EUR198mn (US$312mn), due to price pressures within the market. The distributor now expects to make a full-year operating loss of between EUR98mn (US$154mn) and EUR103mn (US$162mn).

In other company news, Dutch pharmaceutical firm Crucell announced that it was on the look out for further acquisition targets. According to the company, it has over EUR160mn (US$231.34mn) in cash, which puts it in a strong position for a potential purchase. The company, which is valued by the market at around US$1bn, bought Swiss vaccine maker Berna Biotech in 2006.

The Netherlands retains 6th place BMIs Business Environment Rankings for the Western European region. The countrys score remained unchanged over the quarter. Despite the fact that Dutch patients are among the most satisfied in Europe with their health system, the pharmaceutical sector is still punching below its weight with per-capita spending of US$483.5.

Contents

• Executive Summary
  • Netherlands Pharmaceuticals And Healthcare Industry S
  • Netherlands Political SWOT
  • Netherlands Economic SWOT
  • Netherlands Political Industry SWOT
• Pharmaceutical Business Environment Ratings
  • Table: Western European Pharmaceutical Business Environment Ratings
  • Limits To Potential Returns
  • Risks To Realisation Of Returns
  • Market Summary
• Regulatory Regime
  • Intellectual Property Developments
  • Pricing And Reimbursement
  • Industry Developments
  • Healthcare Sector
  • Healthcare Insurance
  • Table: Key Points - Dutch Health Insurance Act, January 1 2006
  • Epidemiology
  • Table: Disease Burden In Western Europe
  • Pharmaceuticals Sector
  • Recent Domestic Companies Activities
  • Recent Foreign Companies Activities
  • Wholesale And Retail Sector Developments
  • Research And Development Sector
• Industry Forecast Scenario
  • Overall Market Forecast
  • Table: The Netherlands Drug Market Forecast Indicators
  • Key Growth Factors - Industry
  • Table: Netherlands Health Expenditure Indicators
  • Key Growth Factors - Macroeconomic
  • Table: Netherlands - Macroeconomic Forecasts
  • Prescription Market Forecast
  • Table: The Netherlands Patented Drug Market Forecast Indicators (US$mn unless otherwise stated)
  • Over-The-Counter Market Forecast
  • Table: The Netherlands OTC Drugs Market Forecast Indicators (EURmn unless otherwise stated)
  • Generics Market Forecast
  • Table: The Netherlands Generics And Branded Market Forecast Indicators
  • Export/Import Forecasts
  • Table: The Netherlands Pharmaceutical Trade Forecast Indicators (US$bn)
  • Key Risks To BMIs Forecast Scenario
• Competitive Landscape
  • Company Profiles
  • Leading Multinational Manufacturers
  • Merck & Co
  • Pfizer
  • GlaxoSmithKline (GSK)
  • Sanofi-Aventis
  • Novartis
  • Indigenous Manufacturers
  • Akzo Nobel
  • DSM
  • Qiagen
  • Pharming Group
  • Crucell
• BMI Forecast Modelling
  • How We Generate Our Pharmaceutical Industry Forecasts
  • Pharmaceutical Business Environment Ratings Methodology
  • Ratings Overview
  • Table: Pharmaceutical Business Environment Indicators
  • Weighting
  • Table: Weighting Of Components
  • Sources