Abstract
In 2008, the UK’s drug expenditure reached a value of GPB18.7bn
(US$36.8bn) and by 2013, it is
expected the drug market will be worth
GBP19.3bn (US$32.7bn), equating to a 0.58% compound annual
growth rate
(CAGR). BMI forecasts a decline in the growth of the country’s drug
market as a result of
the upcoming patent cliff, a period – starting
in 2009, peaking in 2011, and continuing through to 2013 –
when
almost all the leading blockbuster drugs will lose patent protection. This
will result in a massive
decline in sales for some of the world’s
largest drugmakers.
In BMI’s Business Environment Rankings for 2009,
the UK is placed in 6th position, out of the 9 Western
European Markets
surveyed in Q309. Globally, the UK is ranked in 12th position, just behind
the
Netherlands.
Data released by the Association of British Insurers
in April 2009 reveals that despite tough economic
conditions, there has
been an increase in the number of people covered by corporate or personal
medical
insurance. According to the figures, a total of 6.2mn people were
covered by private medical insurance
(PMI) in 2008, compared with 6mn in
2007. Additionally, a further 1mn people were covered through
Healthcare
Trust arrangements in 2008. Fears about superbugs such as MRSA, general
hospital
cleanliness and long waiting lists are factors that push towards
the purchase of PMI.
According to a report published by the Royal College
of Physicians, the UK is losing its leadership edge
in the competitive
market for conducting clinical trials. In the global ranking for effectiveness
of clinical
trials, the UK is ranked in 6th place after the US, China,
India, Russia and Brazil. In response to the UK’s
decline as a top
destination for clinical trials, the Department of Health, in collaboration
with the
Association of the British Pharmaceutical Industry, has developed
a model trial agreement to facilitate the
initiation of trials within the
country’s National Health Service.
BMI’s view that the UK
biotechnology industry would not receive funding from the government has
been
proved correct. In early May 2009, the UK government rejected the
industry’s call for financial support
and tax incentives to promote
research and development. The requests for funding formed part of a report
on the sector, ‘Review and Refresh of Bioscience 2015’, produced
in early 2009, by the Bioindustry
Association (BIA), a life sciences lobby
group. Mid-sized to small specialty pharmaceutical companies
are
experiencing a drastic shortage in funding. The international financial crisis
means there is a low
appetite for risk and less likelihood of investment
in development stage companies, which include most
biotechnology firms.
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