Feasibility Report – European Union (EU) Pharmaceutical Products Market

Feasibility Report – European Union (EU) Pharmaceutical Products Market

As from 2002, the pharmaceutical market in the EU increased strongly at an annual average rate of 7%, reaching approximately € 129.4 billion at ex-factory prices in 2006. Mainly due to the economic growth and increasing health expenditure taking place in these regions, the highest growths rates were registered for the pharmaceutical markets in the Central and East European and Baltic countries.

The share of generic medicines in the total pharmaceutical markets in the EU varies widely from country to country. In Germany, the largest pharmaceutical products market in the EU, the value share of generics is 30%, whereas in France, the second largest pharmaceutical market, the share of generic medicines is only 9%. Moreover, in Central, East European and Baltic countries, the share of genetic medicines in the pharmaceutical market in 2006 was higher than 30% (e.g. Latvia 50% and Slovakia 46%). Different policies and regulations on generic medicines explain the wide variations in the market shares of generic medicines. The EU market for pharmaceutical products is divided into 3 segments: general access pharmacies, hospital pharmacies and other retail outlets. According to European Federation of Pharmaceutical Industries and Associations, the vast majority of pharmaceutical products is sold through general access pharmacies and hospital pharmacies, in the form of prescription products.

The sub-sector in the EU market for pharmaceutical products which provides the best opportunities for exporters in developing countries, is the one for generic medicines. As governments try to restrain health care expenditure and patents expire for an increasing number of pharmaceutical products, generic medicines are gaining ground in the EU. Another development in the EU pharmaceutical market which might offer opportunities for developing country exporters is the growing outsourcing of R&D and production. This development might be translated into opportunities for developing countries to engage in the production of simpler pharmaceutical products, including generic medicines, or ingredients for the pharmaceutical industry.

Developing any new business venture is difficult. Taking a project from the initial idea through the operational stage is a complex and time consuming effort. Before the potential members invest in a proposed business project, they must determine if it can be economically viable and then decide if investment advantages outweigh the risks involved. The feasibility study allows groups to preview potential project outcomes and to decide if they should continue. It is an integral part in developing a new project. The purpose of the feasibility study is to explore the project in enough detail for the interested parties and stake holders to make a commitment to proceed with the development of the project.

Feasibility studies are useful and valid for many kinds of projects. An evaluation of a new business venture both for new groups and established businesses, is the most common, but not the only usage. Studies can help groups to expand existing services, build or remodel facilities, change methods of operation, add new products, or even merge with another business. A feasibility study assists decision makers whenever they need to consider alternative development opportunities.

VENN Research’s feasibility is intends to help the foreign exporters and companies to identify the market opportunities in a particular geography and a vertical. It covers the following aspects:
• Current market scenario and trends
• Export and Import trends
• Market competition and players
• Policies, Laws and Regulatory Initiatives in the industry
• Opportunities and Threats
• Distribution Channel Strategy
• Market Entry Strategy
• Industry Contacts and Relevant Events

This market report profiles the pharmaceutical products market in the EU. The emphasis of this report lies on those products, which are of importance to developing country suppliers. The role of and opportunities for developing countries are highlighted.

This market report discusses the following product groups:

Due to the limited availability of trade data on pharmaceutical products, which only make a distinction between packed and non-packed products, a specific product selection cannot be made. Nonetheless, focus in this report is given to pharmaceutical products which cover the most popular therapy classes worldwide, namely:

• Oncologics (Antineoplastics)
• Lipid regulators (Hypolipidemic agents or antihyperlipidemic agents)
• Respiratory Agents
• Acid Pump Inhibitors
• Antidiabetics
• Antipsychotics
• Antidepressants
• Angiotensin-II Antagonists
• Anti-epileptics
• Autoimmune agents

The emphasis of the report is on those products which are of importance to developing country suppliers. Statistical and background market information on consumption, production and trade, and information on trade structure, prices and market access is provided. Trends and forecasts, as well as opportunities for and threats to developing country suppliers, are highlighted and sources for more information are provided.

Reasons to buy
• A single source to fulfill all of your business and competitor intelligence needs
• Gain a strong understanding of the country’s pharmaceutical industry and the key sectors within it.
• Evaluate the attractiveness of the geography for pharmaceutical investment in the light of government policies and the reimbursement regime.
• Identify growth segments and opportunities in the industry.
• Analyze the competitiveness of the market and target the shares of key competitors.
• Develop strategies based on the latest product, brand, and regulatory events.
• Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the market.
• Identify and analyze the strengths and weaknesses of the industry incumbents.

1 About the Report

2 Executive Summary

3 EU Pharmaceutical Products Consumption Market, 2008
3.1 Generic Medicines
3.1.1 Generics Medicine Market By EU and EU countries
3.1.2 Factors Affecting Generics Market in the EU and EU countries
3.2 Product Segmentation
3.3 Market Segmentation, By Distribution Channels
3.3.1 Pharmacies
3.3.2 Hospital Pharmacies
3.3.3 Other Retail Outlets
3.4 EU Pharmaceuticals Market Consumption Trends
3.5 Opportunities
3.6 Threats
3.7 EU Pharmaceutical Market Forecast

4 EU Pharmaceutical Products Production Market, 2008
4.1 EU Pharmaceutical Production Trends
4.2 Opportunities
4.3 Threats
4.4 EU Pharmaceutical Production Market Forecast

5 EU Pharmaceutical Products Distribution Channels, 2008
5.1 Wholesalers/Importers
5.2 Pharmacies
5.3 Hospitals and Self-Dispensing Doctors
5.4 Other Retail Channels
5.5 Custom-Manufacturing
5.6 Parallel Trade

6 Pricing and Reimbursement Structure
6.1 Reimbursement Systems
6.2 Price Policies
6.2.1 Price Controls at the Manufacturing Level
6.2.2 Price Controls at the Manufacturing Level Specifically For Generic Medicines
6.2.3 Margin Schemes at the Distribution Level
6.2.4 Taxes on Pharmaceuticals

7 Imports - EU Pharmaceutical Products, 2008
7.1 Imports – Product-wise
7.1.1 Non-Packed Pharmaceutical Products
7.1.2 Packed Pharmaceutical Products
7.2 Role of Developing Countries (DC)

8 Exports - EU Pharmaceutical Products, 2008
8.1 Opportunities
8.2 Threats

9 Price Analysis

10 Market Entry Strategy
10.1 Packaging Requirements
10.2 Labeling Requirements

11 Opportunity or Threat

List of Tables:
Table 1: EU Pharmaceutical Market
Table 2: EU Generic Market Value in € mln in 2006, Share Of Generics by EU Countries In % Value, Share Of Generics With Respect To EU Total in % Value, by EU country
Table 3: Leading Pharmaceutical Product Groups in 2006 and 2007 Sales in € Billion, Share Of Global Sales in %
Table 4: EU Pharmaceutical Production 2002-2006, in € Million, at Ex-factory Prices
Table 5: EU Imports of Pharmaceutical Products, 2003-2007, € million / 1,000 tonnes
Table 6 EU Imports And Leading Suppliers Of Non-Packed Pharmaceutical 2003 - 2007, share in % of value
Table 7: EU Imports And Leading Suppliers Of Packed Pharmaceutical Products, 2003 - 2007, share in % of value
Table 8: Imports of Pharmaceutical Products from Developing Countries 2003-2007, € million / 1,000 Tonnes
Table 9: EU Exports Of Pharmaceutical Products 2003-2007, € Million / 1,000 tonnes

List of Figures:
Figure 1: Trade channels for EU Pharmaceutical Products