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The Outlook for Pharmaceuticals in Western Europe
Date:11/15/2011

market in Italy is slow, demand for pharmaceuticals in hospitals increased by a double-digit CAGR between 2006 and 2009, to account for nearly a quarter of the total pharmaceutical market.

SPAIN

The Spanish pharmaceutical market ranks fifth highest in Western Europe; in per capita terms, it ranks much lower. FARMAINDUSTRIA believes that new pharmaceutical medicines will be entering the market in the coming years, together with biologic medicines. The economic slowdown has affected the pharmaceutical industry. Espicom projects a low CAGR in both euro and US dollar terms between 2011 and 2016; the CAGR in US dollar terms is lower than previously projected due to a weaker projected exchange of the euro against the US dollar. The pharmacy sector is expected to increase at a lower rate than the hospital sector, but cost-containment policies will affect both sectors. Almirall and Esteve are the best positioned local companies. In August 2011, Spain passed a new Royal Decree that included a number of new austerity measures to help reduce the country's budget deficit; some measures affected the health sector.

UNITED KINGDOM

The UK pharmaceutical market is set to experience moderate growth over the coming years, tempered slightly by the effects of the economic recession. Deep public spending cuts are underway, with health expenditure experiencing very limited growth over the next few years. The Health and Social Care Bill, which outlines a set of plans to reform the NHS, was amended in June 2011. The overall principle of the reforms remains the same, with a shift in focus to improving healthcare outcomes rather than meeting targets, and a greater emphasis on quality of care. The Cancer Drugs Fund came into force in April 2011, providing £600.0 million (US$938.9 million) over three years to increase patient access to new cancer drugs. There are plans to introduce value-based pricing in place of the PPRS when it expires in 2013, in order to pro
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