Puerto Rico Pharmaceuticals and Healthcare Report Q2 2009

Summary

For BMI's Puerto Rico Pharmaceutical and Healthcare Q209 report, we have forecast the total drug marketing spending to increase from US$2.9bn in 2008 to US$4.1bn by 2013, representing a compound annual growth rate (CAGR) of 7.1% in US dollar terms. We believe the main drivers for growth include the prevalence of cheaper over-the-counter (OTC) and generic drugs that are increasingly available in retail outlets at cheaper prices. Meanwhile, patented medicine will continue to experience positive growth as the island's dominant manufacturing presence will influence consumer preferences.

According to our Business Environment Rankings, Puerto Rico's pharmaceutical and healthcare sector has reached second place in our regional America's rankings, ahead of Canada. Favourable scores on all fronts makes Puerto Rico a low risk area for multinational drugmakers looking to invest in the island.

However, we note most do this to exploit the international export potential and not to directly market pharmaceuticals within Puerto Rico.

During January 2009, the global delivery company DHL opened a new section of its existing facility in Puerto Rico, dedicated to the controlled and safe storage of medical devices and pharmaceuticals. As the country is home to several multinationals that operate manufacturing plants with a high export volume, BMI believes that the new DHL centre will be expected to cater to their increasing storage and distribution demands. Another delivery service provider, UPS, has also announced plans to construct a similar regulated storage facility in San Juan in late 2009.

Recent activity in January 2009 by Japanese drugmaker Daiichi Sankyo has resulted in the opening of an office in Puerto Rico, which BMI believes will result in increased revenue for the firm. The epidemiological profile of the country includes hypertension and diabetes, which we consider to complement Daiichi Sankyo's product portfolio and may have influenced its decision to locate there.

Contents

• Executive Summary
• Puerto Rico Pharmaceuticals And Healthcare Industry SWOT
• Pharmaceutical Business Environment Ratings
• Limits to Potential Returns
• Risks to Realisation of Returns
• Market Summary
• Regulatory Regime
• Pricing and Reimbursement Issues
• Tax Incentives
• Trade Accords
• Industry Developments
• Epidemiology
• Healthcare Sector
• Healthcare Financing
• Healthcare Reforms
• Pharmaceutical Industry
• Pharmaceutical Production
• Plant Closures
• Recent Company Developments
• Pharmaceutical Wholesale and Distribution
• Research and Development
• Biotechnology
• Industry Forecast Scenario
• Overall Market Forecast
• Key Growth Factors - Industry
• Key Growth Factors - Macroeconomic
• Prescription Market Forecast
• OTC Drug Market Forecast
• Patented Drug Market Forecast
• Generic Drug Market Forecast
• Export/Import Forecasts
• Other Healthcare Data Forecasts
• Medical Device Market Forecast
• Key Risks to BMI's Forecast Scenario
• Competitive Landscape
• Company Monitor
• Pfizer
• GlaxoSmithKline
• Merck & Co
• Abbott Laboratories
• Novartis
• Sanofi-Aventis
• Eli Lilly
• Country Snapshot: Puerto Rico Demographic Data
• Section 1: Population
• Section 2: Education and Healthcare
• Section 3: Labour Market and Spending Power
• BMI Forecast Modelling
• How We Generate Our Pharmaceutical Industry Forecasts
• Pharmaceutical Business Environment Ratings Methodology
• Ratings Overview
• Weighting
• Sources
• List of Tables
  • Table: Regional Pharmaceutical Business Environment Ratings Q209
  • Table: Puerto Rico - Incentives, Benefits And Discounts For Pharmaceutical Manufacturers
  • Table: Puerto Rico: Multinational Downscaling
  • Table: Puerto Rico - Drug Market Indicators, 2003-2013
  • Table: Puerto Rico - Health Expenditure Indicators, 2003-2013
  • Table: Puerto Rico: Historical Data and Forecasts
  • Table: Puerto Rico - Prescription Market Indicators, 2003-2013 (US$mn unless otherwise indicated)
  • Table: Puerto Rico - OTC Market Indicators, 2003-2013 (US$mn unless otherwise indicated)
  • Table: Puerto Rico - Patented Market Indicators, 2003-2013
  • Table: Puerto Rico - Generic Drug Market Indicators, 2003-2013
  • Table: Puerto Rico - Pharmaceuticals Exports And Imports, 2003-2013 (US$mn unless otherwise indicated)
  • Table: Puerto Rico - Other Healthcare Data, 2003-2013
  • Table: Puerto Rico Medical Device Market Forecast 2006-2013 (US$mn unless otherwise stated)
  • Table: Demographic Indicators, 2005-2030
  • Table: Rural/Urban Breakdown, 2005-2030
  • Table: Vital Statistics, 2005-2030
  • Table: Employment Indicators, 1999-2004
  • Table: Average Annual Manufacturing Wages, 2000-2012
  • Table: Pharmaceutical Business Environment Indicators
  • Table: Weighting Of Components