France's improving economic backdrop will provide tailwinds to pharmaceuticals andhealthcare market growth trends. The French government will remain committed to health spending overMacron's presidential term, providing revenue-earning opportunities for drugmakers and healthcareservice providers. Meanwhile, the investment environment is set to improve on the back of the government'spro-business agenda and lower corporation tax, which will eventually increase the market attractiveness topharmaceutical investors. However, the labour market reform will face risks stemming from entrenchedperceptions and interests, while cost-containment targeting pharmaceutical spending will remain a keycomponent of government policy, posing challenges to drugmakers.
Headline Expenditure Projections
Pharmaceuticals: EUR33.34bn (USD36.89bn) in 2016 to EUR33.42bn (USD36.77bn) in 2017; +0.2%in local currency terms and -0.3% in US dollar terms. Forecast in line in local currency terms andrevised upwards in US dollar terms from last quarter.
Healthcare: EUR257.50bn (USD284.90bn) in 2016 to EUR264.57bn (USD291.03bn) in 2017; +2.7% inlocal currency terms and +2.2% in US dollar terms. Forecast broadly in line in local currency terms andrevised upwards in US dollar terms from last quarter.
In July 2017, Health Minister Agnès Buzyn confirmed the government's decision to make eightadditional vaccines for early childhood mandatory by 2018. This is in addition tothe three vaccines thatare already mandatory. Current level of vaccination coverage in France had been deemed unacceptable.