GlobalData Provides Market Forecasts for UK, India, and Greece
By Mia Burns (mia.burns@ubm.com)
Although specific factors are providing the United Kingdom’s healthcare market with a lift, the increased use of generics and government cost-cutting measures to reduce expenditure are restricting further growth, according to research and consulting firm GlobalData. The company has published a report stating that the UK pharma market was worth $24 billion in 2012 and is forecast to reach $31.7 billion by 2020. In addition, the dominating drug segments in 2012 were central nervous systems, cardiovascular, and respiratory system. The firm has also released reports covering India and Greece.
“The UK has one of the highest generic usage rates of all major markets, a trend which is set to continue,” says Joshua Owide, GlobalData’s director of healthcare industry dynamics. “In the public healthcare sector, the market for branded therapies is fairly limited where generics are available in the same therapeutic class. There needs to be a significant demonstrable superiority in terms of efficacy in order for a branded therapy to supplant a competing generic therapy, or a lack of generic availability in a specified drug class. The lack of commercial opportunity resulting from widespread generic usage deters many branded drug developers from promoting their therapies as the rewards are so limited.”
Owide also told Med Ad News Daily, “Increasing demand for healthcare services resulting from longer life expectancy and an ageing population demographic, combined with high levels of healthcare expenditure, will ensure the pharma market continues to grow despite downward pressure from generic substitution, price cuts, and the general economic slowdown, adding pressure to reduce spend on costly pharmaceuticals.”
The report outlines key trends within the British pharma market. “The role played by the National Institute for Health and Care Excellence (NICE) has become significant in the UK pharma market, as costly medicines are being increasingly overlooked for reimbursement on the NHS, despite showing efficacy in life-threatening indications such as cancer,” Owide told Med Ad News Daily. “Continued negative decisions from the cost-conscious NICE could eventually deter companies from investing in the UK pharma market altogether. Other key trends include the continued demand for healthcare services, due in part to an ageing population demographic, and generally high levels of healthcare spend.”
According to Owide, the main barriers in the UK pharma market are price cuts, generic substitution, and slow economic growth. “Price cuts have led to a decline in the value of the UK pharma market due to cuts of 3.9 percent in 2009 and 1.9 percent in 2010 on branded medicines,” he told Med Ad News Daily. “In June 2013, the DH announced plans to cut drug prices by 10 percent to 20 percent on branded medicines not covered in voluntary Pharmaceutical Price Regulation Scheme. In 2011, in England, 642.8 million prescription items were dispensed generically, up from 531.8 million prescriptions in 2008. Since generics are priced significantly lower than patented drugs, this trend has resulted in a decrease in the overall value of the UK pharma market. Additionally, the global economic slowdown, the Eurozone crisis and the UK government’s deficit reduction program have all hindered economic recovery, resulting in a decline in Foreign Direct Investment and presenting a further barrier to growth of the UK pharma market.”
GlobalData claims that UK pharma companies are in a position to work with regulatory agencies for better outcomes regarding the drug approval process. “There are a number of routes a pharma company can take in order to get their drug approved in the United Kingdom,” Owide says. “There is the national procedure, in which applications for market authorization go directly to the Medicines and Healthcare products Regulatory Agency. The more common approach is the community process, which takes submissions to the EMEA, either via the centralized, decentralized, or mutual recognition procedure pathway. In the European Union and United Kingdom, the approval process is extremely robust and presents few issues to pharma companies. The key determinant of a drug’s success in the United Kingdom is the reimbursement process.”
Regarding India, the market will increase from about $21 billion in 2013 to $56 billion in 2020 with the country’s growing economy and population income as the driving factors. “India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas,” Owide said. “However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”
Given the prevalence of chronic diseases and increasing elderly population in Greece, GlobalData is forecasting the market to grow from about $7.8 billion in 2013 to $8.2 billion in 2020. In 2007, the Greek pharma market was valued at $7.5 billion in 2007; but, following the recent economic crisis, net public pharmaceutical expenditure saw a cumulative decline of $1.67 billion. The decline was because of amendments made to medicine prices, as well as changes to the reimbursement rates for Social Security Funds and to the regulation of wholesale and retail margins.
“As part of cost-containment measures, the Greek government is encouraging the use of generics with the aim that generics will eventually account for 50 percent of all medicines used in hospitals,” Owide said. “As part of the economic reforms and austerity measures, nearly 95 percent of drug prices have been reduced by 20 percent. Furthermore, healthcare reforms in terms of reimbursement have led to an increase in the co-payments for certain chronic diseases, with rates ranging from 10 percent to 25 percent. These, along with other cost-containment measures, will restrict market growth.”
British Pharmaceutical Market to Reach $31.7 Billion by 2020, Forecasts GlobalData
Indian Pharmaceutical Market to reach $56 billion by 2020, says GlobalData
Greek Pharmaceutical Market to Show Modest Growth despite Unstable Economy
Although specific factors are providing the United Kingdom’s healthcare market with a lift, the increased use of generics and government cost-cutting measures to reduce expenditure are restricting further growth, according to research and consulting firm GlobalData. The company has published a report stating that the UK pharma market was worth $24 billion in 2012 and is forecast to reach $31.7 billion by 2020. In addition, the dominating drug segments in 2012 were central nervous systems, cardiovascular, and respiratory system. The firm has also released reports covering India and Greece.
“The UK has one of the highest generic usage rates of all major markets, a trend which is set to continue,” says Joshua Owide, GlobalData’s director of healthcare industry dynamics. “In the public healthcare sector, the market for branded therapies is fairly limited where generics are available in the same therapeutic class. There needs to be a significant demonstrable superiority in terms of efficacy in order for a branded therapy to supplant a competing generic therapy, or a lack of generic availability in a specified drug class. The lack of commercial opportunity resulting from widespread generic usage deters many branded drug developers from promoting their therapies as the rewards are so limited.”
Owide also told Med Ad News Daily, “Increasing demand for healthcare services resulting from longer life expectancy and an ageing population demographic, combined with high levels of healthcare expenditure, will ensure the pharma market continues to grow despite downward pressure from generic substitution, price cuts, and the general economic slowdown, adding pressure to reduce spend on costly pharmaceuticals.”
The report outlines key trends within the British pharma market. “The role played by the National Institute for Health and Care Excellence (NICE) has become significant in the UK pharma market, as costly medicines are being increasingly overlooked for reimbursement on the NHS, despite showing efficacy in life-threatening indications such as cancer,” Owide told Med Ad News Daily. “Continued negative decisions from the cost-conscious NICE could eventually deter companies from investing in the UK pharma market altogether. Other key trends include the continued demand for healthcare services, due in part to an ageing population demographic, and generally high levels of healthcare spend.”
According to Owide, the main barriers in the UK pharma market are price cuts, generic substitution, and slow economic growth. “Price cuts have led to a decline in the value of the UK pharma market due to cuts of 3.9 percent in 2009 and 1.9 percent in 2010 on branded medicines,” he told Med Ad News Daily. “In June 2013, the DH announced plans to cut drug prices by 10 percent to 20 percent on branded medicines not covered in voluntary Pharmaceutical Price Regulation Scheme. In 2011, in England, 642.8 million prescription items were dispensed generically, up from 531.8 million prescriptions in 2008. Since generics are priced significantly lower than patented drugs, this trend has resulted in a decrease in the overall value of the UK pharma market. Additionally, the global economic slowdown, the Eurozone crisis and the UK government’s deficit reduction program have all hindered economic recovery, resulting in a decline in Foreign Direct Investment and presenting a further barrier to growth of the UK pharma market.”
GlobalData claims that UK pharma companies are in a position to work with regulatory agencies for better outcomes regarding the drug approval process. “There are a number of routes a pharma company can take in order to get their drug approved in the United Kingdom,” Owide says. “There is the national procedure, in which applications for market authorization go directly to the Medicines and Healthcare products Regulatory Agency. The more common approach is the community process, which takes submissions to the EMEA, either via the centralized, decentralized, or mutual recognition procedure pathway. In the European Union and United Kingdom, the approval process is extremely robust and presents few issues to pharma companies. The key determinant of a drug’s success in the United Kingdom is the reimbursement process.”
Regarding India, the market will increase from about $21 billion in 2013 to $56 billion in 2020 with the country’s growing economy and population income as the driving factors. “India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas,” Owide said. “However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”
Given the prevalence of chronic diseases and increasing elderly population in Greece, GlobalData is forecasting the market to grow from about $7.8 billion in 2013 to $8.2 billion in 2020. In 2007, the Greek pharma market was valued at $7.5 billion in 2007; but, following the recent economic crisis, net public pharmaceutical expenditure saw a cumulative decline of $1.67 billion. The decline was because of amendments made to medicine prices, as well as changes to the reimbursement rates for Social Security Funds and to the regulation of wholesale and retail margins.
“As part of cost-containment measures, the Greek government is encouraging the use of generics with the aim that generics will eventually account for 50 percent of all medicines used in hospitals,” Owide said. “As part of the economic reforms and austerity measures, nearly 95 percent of drug prices have been reduced by 20 percent. Furthermore, healthcare reforms in terms of reimbursement have led to an increase in the co-payments for certain chronic diseases, with rates ranging from 10 percent to 25 percent. These, along with other cost-containment measures, will restrict market growth.”
British Pharmaceutical Market to Reach $31.7 Billion by 2020, Forecasts GlobalData
Indian Pharmaceutical Market to reach $56 billion by 2020, says GlobalData
Greek Pharmaceutical Market to Show Modest Growth despite Unstable Economy
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