Summary
The UK pharmaceuticals industry is characterised by an unpopular cost-effectiveness regulator, pioneering OTC switches, a robust clinical trials sector and by being a favoured destination for parallel traded medicines, according to BMI 's recently published "United Kingdom Pharmaceuticals & Healthcare Report Q3 2006". Despite government cost-containment measures, the size of the market is expected to grow in the mid-tem, albeit at rates below those seen over the last decade. Currently, the market is valued at US$25bn and it is expected to reach over US$32bn by 2010.
NICE - the country's cost-effectiveness regulator - is causing much distress to patients by preventing the newest drugs from being available on the National Health Service (NHS), leaving sick individuals to pay for the often lifesaving products themselves. In August 2006, NICE deemed that two breakthrough colon cancer drugs were too expensive despite being safe, highly effective, easier to tolerate than traditional chemotherapy, and available in every other EU country. Meanwhile, Japanese firm Eisai has petitioned the UK government to investigate why NICE is restricting patient access to its breakthrough Alzheimer's disease drug Aricept(donepezil).
The adjusted Business Environment Rankings for Western Europe reveal that the UK has moved down a place to third, behind Switzerland and Germany. The primary reason for the drop is the country's worsening regulatory environment. Because of the dominance of the domestic multinationals - GlaxoSmithKline (GSK) and AstraZeneca - the UK also scores poorly for domestic sector threat. However, the country's political and economic risk is among the most favourable worldwide, which underpins its lofty position in the rankings.
The NHS is not seeing value for money from the extra billions of pounds that it has been given, with bureaucracy primarily to blame, according a recent report. Since 2002, the budget of the NHS has increased by approximately 7% per annum and is projected to reach GBP92.6bn (US$176bn) by the 2007-8 fiscal year. Among the thousands of new staff working in the NHS, the single biggest increase has been in the number of managers, up by 58%.
Empowering patients and reducing the burden on healthcare providers, the UK reclassified several medicines from either prescription-only medicine to pharmacy-only, or pharmacy-only to general sales list in September 2006, partly to reflect recent changes in national, European or international recommendations. GSK's Imigran(sumatriptan) for the acute relief of migraine is among the products now available over-the-counter.
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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