BMI's Executive Summary

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Spain's drug market is growing at a sluggish pace and was worth US$16.18bn in 2006. Over the remainder of the forecast period BMI expects a compound annual growth rate (CAGR) of 2.65%, bring total sector value to US$18.9bn, although the new reference pricing system and a subsequent drop in medicine prices will have a deflationary impact. As shown in this Spain Q108 Pharmaceuticals & Healthcare Report, growth should be higher in the generics sector, with sales expanding above overall market expectations, albeit from a smaller base.

In terms of company activity, Pharmamar, an arm of Spanish drugmaker Zeltia, had achieved a real coup with the launch of its cancer medicine Yondelis in the UK and Germany following EU approval. The drug is derived from marine sources and is positioned to treat advanced soft tissue sarcoma. It is the first anticancer agent developed by a Spanish firm to reach such a milestone, providing an endorsement of the government's increased emphasis on biotechnology.

Despite this, the Spanish Society of Oncological Medicine has called for greater private and public funding for cancer research and is also calling for a reduction in red tape, which it considers one of the greatest stumbling blocks to drug development. BMI would tend to agree and in our Business Environment Ratings (BER) we give Spain a score of 59.2 for bureaucracy, one of the worst scores in the region. However, we believe that even deeper changes will be needed to kick-start the research sector.

Spain takes joint last position in BMI's BER for the Western European Region. We have completely overhauled the methodology for Q108, giving greater weight to regulatory factors affecting the drug market, while using a more nuanced analysis of country-specific economic and political factors. Spain's position derives mainly from stagnant growth in its drug market and poor intellectual property (IP) regime compared to its regional peers.

Meanwhile, with the general election scheduled for March 2008, and opinion polls showing no clear leader, developments over the coming months will be crucial in determining which party will be elected. According to a recent poll by the Centro de Investigaciones Sociológicas (CIS), public opinion is evenly split between the two main political parties. The ruling Partido Socialista Obrero Español (PSOE) is currently marginally ahead, and another victory should help the country maintain its relatively high health expenditure.

Contents

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Chapter 1 - Executive Summary

Spain Pharmaceuticals & Healthcare Industry SWOT

Spain Economic SWOT

Chapter 2 - Spain: Business Environment Rankings

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 - Spain: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Issues

Pricing & Reimbursement Issues

Table: Timeline: Spain's pharmaceutical pricing reforms

2006 Medicines Law

Price Cut On Older Drugs

Reference Pricing System

Industry Reaction

Parallel Trade

Chapter 5 - Industry Developments

Foreign Sector

Generics Sector

Indigenous Manufacturing Sector

Research Sector Developments

Table: Firms Active In Nanofarma Consortium

Government Investment

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Spain Drug Market Forecast Indicators

Table: Spain Health Expenditure Forecast Indicators

Key Growth Factors - Industry

Key Growth Factors - Macroeconomic

Table: Spain - Macroeconomic Forecasts

Prescription Market forecast

Table: Notifiable Infectious Diseases - Registered Cases In Spain (2001)

Table: Mortality By Major Cause Of Death, 2003

Table: Spain Prescription Drugs Market Forecast Indicators

OTC Market Forecast

Table: Spain OTC Market Forecast Indicators

Generics Market Forecast

Table: Spain Generics & Branded Market Forecast Indicators

Export/Import Forecast

Table: Sectoral Trade Indicators

Chapter 7 - Competitive Landscape

Retail Market

Manufacturers

Table: Leading Spain Pharmaceutical Manufacturers

Chapter 8 - Company Profiles

Leading Multinational Manufacturers

GlaxoSmithKline (GSK)

Pfizer

Novartis

Sanofi-Aventis

Merck & Co

Indigenous Manufacturers

Almirall Prodesfarma

Dr Esteve

Chapter 9 - Country Snapshot: Spain 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

Table: Wages Per Year

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

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: