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France Pharmaceuticals & Healthcare Q4 2006Published by: Business Monitor International Published: Dec. 1, 2006 - 65 Pages Table of Contents
AbstractThe French pharmaceutical market is experiencing a significant slowdown as a result of disciplined cost-containment measures. The trend has been apparent since the beginning of 2006, and sales of reimbursable medicines fell in July for the first time in ten years. Nevertheless, the sector is buoyant and is by no means in terminal decline. Indeed, the French drug industry association LEEM even acknowledges that the French pharmaceutical industry progresses cyclically, with boom followed by regression, leading into growth again. In volume terms, 2.7bn packs of medicines were dispensed in France in 2005, which was a 3.4% increase on the previous year. Late in 2005, the government removed some 400 products from the reimbursement list in an effort to cut healthcare spending by EUR3.5bn (US$4.35bn) by 2008. Primarily as a result of this, the country is expected to keep healthcare expenditure within budget this year. However, the French consume significantly more pills and have more injections than their Western European neighbours, leading to calls for the nation to stop overmedicating itself, particularly with psychotropic drugs. BMI's adjusted Business Environment Rankings for Western Europe reveal that France is placed equal third with the UK and Italy, and behind Germany and Switzerland. The country scores well in market size and long-term politics, but is let down by market growth. On account of major local players such as Sanofi-Aventis, the domestic sector threat is high. Demonstrating accounting transparency, the French government and the pharmaceuticals industry agreed in June 2006 that the cost of medicines dispensed from hospitals to patients should be limited. The industry will pay back any money it earns through hospital pharmacies dispensing medicines to non-hospitalised patients once predetermined growth targets are exceeded - the French parliament has set 1% annual growth as the target for the period 2005-07. Reflecting European reorganisation of drug production in the context of the greater clarity of national policy, France's pharmaceutical exports rose 9.2% in 2005 to EUR16.7bn (US$21.3bn), which was nearly double the expected increase. It is BMI's view that exports from France will remain buoyant, albeit increasing by a lesser degree compared to last year. A conservative 5% annual increase is forecast and exports are expected to reach US$27bn by 2010. |
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