BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Pharmaceutical Sector Of Belgium

Belgium’s pharmaceuticals market is characterised by high per-capita spend, low generic penetration and widespread cost-cutting measures. Due to its mature status, as well as small population, growth opportunities are limited, although informed patients are driving the uptake of the latest technologies and medications. The value of the pharmaceutical market is currently US$4.7bn, and 5-6% year-on-year (y-oy) growth is forecast through to 2010, when the market is predicted to reach US$5.9bn in value.

A reference pricing system was introduced in 2001 to encourage the wider dispensing of generic drugs. Under the scheme, pharmaceuticals are reimbursed on the basis of the price of the generic drug, which was initially set at 16% less than that of the equivalent branded product. Over time, the Belgian government has progressively reduced the reference price from 84% (until July 2002), 80% (until January 2003) to 74% of the price of the originator medicine (at July 2005). The rate now stands at 30% below that of the equivalent branded product, although the penetration of generic medicine still remains well below that in Germany and the UK.

BMI’s adjusted Business Environment Rankings for Western Europe reveal that Belgium places six, just ahead of Spain and the Netherlands. The country scores highly for political and economic risk and also for market growth potential, but is disadvantaged by its small market size, low prices and limited potential for growth, especially in the face of the need to contain healthcare costs.

Domestic industry is relatively limited in reach, with the exception of Solvay and UCB Pharma. Many multinationals use Belgium as an international distribution centre, meaning that import/export trade in pharmaceutical products far exceeds the value of the domestic market. In addition, the country is a major manufacturing hub, particularly for biopharmaceuticals. Both GlaxoSmithKline Biologicals and Solvay have vaccine production capabilities in Belgium, with the country representing one of the main global centres of vaccine manufacture.

Contents

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Chapter 1 - Executive Summary

Belgium Pharmaceuticals & Healthcare Industry SWOT

Belgium Political SWOT

Belgium Economic SWOT

Chapter 2 - Belgium: Business Environment Ranking

Western Europe

Table: Western Europe Business Environment Rankings

Business Environment Ranking

Economics – Long-Term Risk

Politics – Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Belgium: Market Summary

Regulatory Regime

Intellectual Property Developments

Pricing And Reimbursement Regime

Pricing And Reimbursement Developments

Chapter 4 - Industry Developments

Healthcare Sector

Table: Healthcare Budget In Belgium (US$bn)

Health Profile

Table: Main Causes of Death

Recent Healthcare Sector Developments

Pharmaceuticals Sector

Recent Company Developments

Generics Sector

R&D Sector

Healthcare Information Technology (IT) Developments

Chapter 5 - Industry Forecast Scenario

Overall Market Forecast

Table: Belgium Drug Market Forecast Indicators

Key Growth Factors – Industry

Table: Belgium Health Expenditure Indicators

Key Growth Factors – Macroeconomic

Table: Belgium – Macroeconomic Forecasts

Prescription Market Forecast

Table: Belgium Prescription Drugs Market Forecast Indicators

OTC Market Forecast

Table: Belgium OTC Drugs Market Forecast Indicators

Generics And Branded Market Forecast

Table: Belgium Generics And Branded Drug Market Forecast Indicators

Export/Import Forecasts

Table: Belgium Pharmaceuticals Exports And Imports Forecasts

Other Healthcare Data Forecasts

Table: Belgium Healthcare Data Forecast Indicators

Key Risks To CHAPTER - BMI Forecasts

Chapter 6 - Competitive Landscape

Table: Leading Pharmaceutical Company Sales In Belgium, 2004-2005

Chapter 7 - Company Monitor

Leading Multinational Manufacturers

GlaxoSmithKline (GSK)

Pfizer

Novartis

Sanofi-Aventis

Merck & Co

Janssen Pharmaceutica

Leading Indigenous Manufacturers

UCB Pharma

Solvay

Omega Pharma

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 9 - Appendix: Demographic Data

Country Snapshot: Belgium Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Competitive Landscape for Europe Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of European Pharmaceutical & Healthcare Sources

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BMI's Pharmaceuticals & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceutical & healthcare industry associations, chambers of commerce and company reports. Information sources include: