Spain Pharmaceuticals & Healthcare

Summary

Market Summary

The Spanish pharmaceutical market is among the top five in Europe and the top 10 in the world, with per capita spending at US$391 in 2004. Despite continued government efforts to cap expenditure, the market has experienced strong growth in recent years.

Regulatory Developments

The proposals regarding the Guarantee and Rational Use of Medicines, or Medicines Law, is one step closer to entering into force, as in late October 2005, the draft law was approved by government ministers and submitted for parliamentary debate and approval. The government hopes the law will come into force by summer 2006, and it will see a new reference price system implemented, improved vigilance of drugs and increased promotion of generics among other aspects. Industry association, Farmaindustria, has been a vocal critic of proposals.

Competitive Developments

There are between 250 and 300 drug producers in Spain, employing almost 40,000 people. The leading player on the market in terms of sales is Pfizer, accounting for close to 10% of the market. Since June 2005, Pfizer has bypassed traditional wholesalers to contract its own distributors, in an attempt to solve the problem of parallel imports. As a result, the Association of Euro-Pharmaceutical Companies filed a complaint with the EC, in October 2005, alleging Pfizer is breaking EU competition law in. Leading domestic player, Almirall Prodesfarma, signed an agreement with Germany's Merz in November 2005, and in September, Merck KGaA announced it is to buy Almirall's business unit, Prasfarma, for EUR20mn.

Market Developments

The new drug pricing reference system, price-cuts and a new industry tax have brought particularly harsh criticism from the industry, as have newer proposals set out in the revised Medicines Law. While the industry claims it will discourage investment in R&D, the MoH claims otherwise, stating its Plan de Farmacias will support and encourage R&D. In other news, the health ministry has carried out two promotional campaigns during the quarter. The first warns consumers against using old-prescription drugs for self-medications, and the second encourages the use of generics. Government figures published in October 2005 show that pharmaceutical spending totalled EUR841.4mn, representing a 4.8% increase on the same month in October 2004. Politicians claim that these figures confirm that drug spending is stabilising.

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 SWOTSon 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. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.

Contents

Executive Summary

Spain Pharmaceuticals & Healthcare Industry SWOT
Spain Economic SWOT

Spain: Business Environment Rankings

Western Europe
Table: Western Europe Business Environment Rankings
Business Environment Ranking
Economics - Long Term risk
Politics - Long Term risk
Regulatory Barriers
Domestic Sector Threat
Market Growth Potential
Market Size Ranking

Spain: Market Summary

Regulatory Regime

Intellectual Property Issues
Pricing & Reimbursement Issues
2006 Medicines Law
Price Cut On Older Drugs
Expansion Of Reference Pricing System
Industry Reaction

Retail Market Performance Industry Developments

Foreign Sector
Generics Sector
Indigenous Manufacturing Sector
Research Sector Developments
Government Investment

Industry Forecast Scenario

Overall Market Forecast
Table: Spain Drug Market Forecast Indicators
Table: Spain Health Expenditure Forecast Indicators.
Key Growth Factors - Industry
Key Growth Factors - Macroeconomic
Table: Spain - Macroeconomic Forecasts
Prescription Market forecast
Table: Notifiable Infectious Diseases - Registered Cases In Spain (2001)
Mortality By Major Cause Of Death, 2003
Table: Spain Prescription Drugs Market Forecast Indicators.
OTC Market Forecast.
Table: Spain OTC Market Forecast Indicators
Generics Market Forecast
Table: Spain Generics & Branded Market Forecast Indicators
Export/Import Forecast
Table: Sectoral Trade Indicators 39
Competitive Landscape
Table: Leading Spain Pharmaceutical Manufacturers

Country Snapshot: Spain Demographic Data

Section 1: Population:
Table: Demographic Indicators (2005)
Table: Rural/Urban Breakdown
Section 2: Education & Healthcare .
Table: Education
Table: Healthcare: Vital Statistics.
Table: Healthcare: Expenditure .
Section 3: Labour Market And Spending Power
Table: Employment Indicators.
Table: Consumption And Stratification
Table: Wages Per Year

Company Profiles

Leading Multinational Manufacturers .
GlaxoSmithKline (GSK)
Pfizer
Novartis
Sanofi-Aventis
Merck & Co
Indigenous Manufacturers
Almirall Prodesfarma
Dr Esteve

BMI Forecast Modelling

How we generate our industry forecasts
Technical Process.
Pharmaceutical Industry
Sources