Spain Pharmaceuticals and Healthcare Report Q2 2009

Spain Pharmaceuticals and Healthcare Report Q2 2009

BMI calculates Spain’s pharmaceutical expenditure to have been EUR15.25bn (US$21.79bn) in 2008. By
2013, we expect the total amount spent on prescription and OTC medicines to have reached a value of
EUR19.00bn (US$24.05bn) equating to a compound annual growth rate of 4.5% in local currency terms.
In BMI’s Business Environment Rankings for 2009, Spain is ranked 4th out of the 9 Western European
markets surveyed. Globally, France is ranked in 7th position just behind Belgium and Puerto Rico, after
moving up two places in Q209.
In January 2009, several of Spain's regional autonomies called for an overhaul of the pharmaceutical and
healthcare co-payment system, with the goal to rein in bulging healthcare expenditure and reduce existing
levels of debt. Suggestions included making pensioners contribute towards drug co-payments. The
ministry of health dismissed the opportunity to debate the issue, however, stating that savings would not
offset the social cost of such changes.
In February 2009, the Spanish Ministry of Health announced that it is to launch campaigns to educate and
encourage citizens to purchase non-prescription drugs for disorders that can be self-treated. The aim of
the project is to reduce the burden on physicians and the government's health budget, so healthcare
resources can be used to treat patients with more serious illnesses, patients can be provided with up-todate
medication that may cost more and a larger number of serious disorders can be treated.
Thirteen new groups of medicines were added to the reference price scheme which came into force in
March 2009. A third of prescription-only medicines dispensed in Spain are subject to the reference
pricing system, and the average decrease of the price of medicines under the scheme has reached 40%.
Therefore, in two years, the price of these medicines has nearly halved.
BMI believes that the recent price cuts will be welcomed by consumers - as well as leading to healthcare
savings, the scheme highlights the presence of regulation in the market and inhibits pharmaceutical
companies from completely controlling prices. However, in previous years the industry has criticised this
policy, as profit margins have been continually squeezed. It will therefore not come as a surprise if the
government's latest cost-containment measures are similarly received by drug producers.
In March 2009, Spain’s National Pharmacists’ Association, said that the country required a better generic
medicine’s policy and that measures that constantly lowered the price of medicines were eroding the role
of generic medicines. The new pricing order that was introduced in the same month revealed that out of
the 5,289 presentations that are subject to reference pricing, 2,847 were generic medicines. The
Association said that this presents little incentive to drug makers to continue to produce existing generic
medicines, or to register new ones.

Executive Summary 5
Swot Analysis 6
Spain: Pharmaceutical And Healthcare Industry SWOT 6
Spain Political SWOT 7
Spain Economic SWOT 7
Pharmaceutical Business Environment Ratings 8
Table: Western Europe Pharmaceutical Business Environment Rankings 8
Limits To Potential Returns 9
Risks to Realisation of Potential Returns 9
Spain – Market Summary 10
Regulatory Regime 11
Intellectual Property Issues 12
Pricing and Reimbursement Issues 13
Table: Timeline – Spain's Pharmaceutical Pricing Reforms 15
Price Cut On Older Drugs 17
Reference Pricing System 18
Industry Reaction 20
Parallel Trade 21
Industry Developments 23
Table: SNS Debt 2007 24
Industry Forecast Scenario 27
Overall Market Forecast 27
Table: Spain’s Drug Market Indicators, 2004-2013 28
Key Growth Factors – Industry 29
Table: Spain’s Health Expenditure Indicators, 2004-2013 30
Key Growth Factors – Macroeconomic 31
Table: Spain - Economic Activity 33
Prescription Market Forecast 34
Table: Spain – Prescription Drug Market Forecast (2004-2013) 36
Patented Market Forecast 37
Table: Spain’s Patented Drugs Market Indicators, 2004-2013 37
Generics Market Forecast 38
Table: Spain’s Generics Market Indicators, 2004-2013 39
OTC Market Forecast 40
Table: Spain’s OTC Market Forecast Indicators (US$mn unless otherwise stated) 41
Export/Import Forecast 42
Table: Pharmaceutical Trade Indicators, 2004-2013 (US$mn) 42
Medical Devices Forecast 43
Table: Spain’s Medical Device Market, 2002-2012 (US$bn unless otherwise stated) 44
Key Risks to BMI Forecasts 44
Competitive Landscape 45
Manufacturers 45
Foreign Sector 45
Indigenous Sector 47
Generics Sector 48
Research/Biotechnology Sector Developments 50
Table: Firms Active In Nanofarma Consortium 52
Government Investment 55
Company Profiles 56
Leading Multinational Manufacturers 56
GlaxoSmithKline (GSK) 56
Pfizer 58
Novartis 60
Sanofi-Aventis 62
Merck & Co 64
Indigenous Manufacturers 66
Almirall Prodesfarma 66
Dr Esteve 69
Country Snapshot: Spain Demographic Data 71
Section 1: Population 71
Table: Demographic Indicators, 2005-2030 71
Table: Rural/Urban Breakdown, 2005-2030 72
Section 2: Education and Healthcare 72
Table: Education, 2002-2005 72
Table: Vital Statistics, 2005-2030 72
Section 3: Labour Market and Spending Power 73
Table: Employment Indicators, 2001-2006 73
Table: Consumer Expenditure, 2000-2012 (US$) 73
Table: Average Annual Manufacturing Wages, 2000-2012 74
BMI Forecast Modelling 75
How We Generate Our Pharmaceutical Industry Forecasts 75
Pharmaceutical Business Environment Ratings Methodology 76
Ratings Overview 76
Table: Pharmaceutical Business Environment Indicators 77
Weighting 78
Table: Weighting Of Components 78
Sources 78