BMI's Executive Summary

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Sales in Italy's retail pharmacy sector are continuing to fall due to the impact of price cuts enacted in 2006. However, overall growth should be reasonable over the forecast period, clocking in at around 4.3% per annum. BMI believes much of the growth will be driven by the consumer health sector, which is benefiting from the impact of liberalisation. Meanwhile, the generics sector is experiencing exceptional growth, albeit form a small base, and should account for almost 10% of the market by 2012.

However, belt-tightening from the current administration looks set to continue in 2008, as Italy attempts to reduce its sizeable national debt. This could trigger further austerities in the health and drug sectors, even though the country has been rocked by three strikes from medical workers in the past two years. This propensity for industrial action might force the government to think carefully before implementing any deep cuts. Meanwhile, the current policy of high taxation and low public spending is proving unpopular among the public, even if designed to be a short-term contingency.

One policy that should appeal to patients is Health Minister Livia Turco's plan to scrap co-payment charges for prescription drugs. BMI believes that if pushed through, the reform will increase access to medicines and relieve some burden from consumers, although at the danger of possibly leaving a hole in public finances. This last point is a concern for some observers who point out that there are already problems with indebtedness in the system.

Meanwhile, Italy takes sixth position in BMI's Business Environment Rankings for the Western European Region. We have completely overhauled the methodology in Q108 giving greater weight to regulatory factors affecting the drug market, while utilising a more nuanced analysis of country-specific economic and political factors. Italy's position derives mainly from poor indicators for Market Risk, especially concerning bureaucracy, corruption and the legal framework.

Chapter 1 - Executive Summary

Table: Italy Pharmaceuticals & Healthcare Industry SWOT

Table: Italy Political SWOT

Table: Italy Economic SWOT

Chapter 2 - Business Environment Rankings

Western Europe

Table: Western Europe Business Environment Rankings

Business Environment Rankings

Economics – Long-term Risk

Politics – Long-term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Italy: Market Summary

Healthcare Sector

Chapter 4 - Regulatory Regime

Intellectual Property Developments

Pricing & Reimbursement Issues

Chapter 5 - Industry Developments

Company Developments

OTC Sector

Pharmacy Sector

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Drug Market Indicators

Key Growth Factors - Industry

Table: Health Expenditure Indicators

Key Growth Factors – Macroeconomic

Economic Activity

Table: Italy - Macroeconomic Forecasts

Prescription Market Forecast

Table: Prescription Drug Market Indicators

OTC Market Forecast

Table: OTC Market Indicators

Generic Market Forecast

Table: Generics And Branded Market Indicators

Export/Import Forecast

Table: Sectoral Trade Indicators

Other Healthcare Data Forecasts

Table: Socio-demographic Indicators

Chapter 7 - Competitive Landscape

Overview

Chapter 8 - Company Profiles

Leading Multinational Manufacturers

GlaxoSmithKline

Pfizer

Novartis

Sanofi-Aventis

Merck & Co

Indigenous Manufacturer

Recordati

Chapter 9 - BMI Forecast Modelling

How we generate our industry forecasts

Pharmaceutical Industry

Sources

Chapter 10 - Country Snapshot: Italy 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: