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Belgium Pharmaceuticals and Healthcare Report Q1 2012
Business Monitor International, Dec 2011, Pages: 79
Business Monitor International's Belgium Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Belgium's pharmaceuticals and healthcare industry.
BMI View: The expected growth of Belgium’s ageing population will have an unprecedented effect on the provision of healthcare. The elderly require more medical check-ups and care than young people due to the increased prevalence of chronic disease with age and therefore they consume a disproportionately large share of healthcare services. The increase in healthcare spending on the ageing population will force public bodies to look for cost-containment in other areas – specifically medicines that account for high proportions of healthcare budgets – which will not sit well with drugmakers.
Headline Expenditure Projections
- Pharmaceuticals: EUR4.56bn (US$6.05bn) in 2010 to EUR4.48bn (US$6.41bn) in 2011; -1.8% in local currency terms and +5.9% in US dollar terms.
- Healthcare: EUR35.77bn (US$47.45bn) in 2010 to EUR36.85bn (US$52.70bn) in 2011; +3.0% in local currency terms and +11.1% in US dollar terms.
- Medical devices: EUR7.70bn (US$10.21bn) in 2010 to EUR8.21bn (US$11.74bn) in 2011; +6.6% in local currency terms and +14.9% in US dollar terms.
Business Environment Rating: Out of a maximum of 100, Belgium scores 65.0 in BMI’s Q112 Pharmaceuticals and Healthcare Business Environment Ratings (BERs), making it sixth in the Western Europe matrix. Although growth in medicine sales is low, the country has a very large market in absolute terms. Furthermore, per capita spending is high, there is a sizeable pensionable population and regulations are transparent. Emphasising its attractiveness as a pharmaceutical market globally, Belgium is 12th out of the 95 markets surveyed by BMI’s ever-expanding pharmaceutical universe.
Key Trends And Developments
- In October 2011, Belgium’s national association of generic drug manufacturers, FeBelGen, said the harsh pricing measures placed on generic medicines were leading to a delay in the launch of off-patented medicines in Belgium. FeBelGen said 17 out of 31 generic medicines to be launched in Belgium in 2010 and 2011 were delayed or not launched at all, resulting in a loss of EUR88mn for the National Institute for Health and Invalidity Insurance (INAMI).
- Also in October, Omega Pharma abandoned its full-year forecast after Q3 sales missed market expectations due to weakness in southern Europe and structural changes in Russia. The company, which sells non-prescription products to pharmacists and has plans to delist, said - sales totalled EUR202.4mn (US$277mn), a rise of just 1% year-on-year (y-o-y).
BMI Economic View: While its outlook for the Belgian economy remains broadly constructive, BMI warns that contagion from the debt crisis at the periphery of the eurozone will remain a threat over the medium term. As it has highlighted previously, Belgium’s national debt is close to 100% of GDP, with sustainability being questioned in light of the domestic political crisis, lack of credible fiscal reform and more general concerns about eurozone sovereign debt. If the economy can continue to achieve strong growth in nominal GDP, the lack of government and strong fiscal reform may be overlooked.
BMI Political View: In September 2011, it looked as if the 15-month long political deadlock in Belgium may finally have been breached following a breakthrough on political boundary negotiations. The country has been without a government since the parliamentary election in June 2010, surpassing Iraq’s record for the longest spell without a working government. At the heart of the dispute are disparate ideologies between the nationalist Flemish-speaking area of Flanders in the north and the mainly French-speaking part of Wallonia in the south. Disagreements over issues including political boundaries, fiscal policy and devolution have led to a protracted period of negotiation between the main political parties (neither of which have a parliamentary majority) and King Albert II has appointed eight separate mediators in an attempt to bring the factions together. In the first sign for many months that the political parties are closer to a resolution, the eight parties concluded a lengthy 10-hour negotiation over electoral boundaries in September. Having reached a compromise agreement on what has been one of the thorniest issues in the coalition talks, the path is clear for discussions on forming a government rather than fighting over specific policy issues. However, the process has much further to go due to the fractious nature of Belgian politics and the need to form a multiparty coalition.
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