Abstract
In BMI’s Business Environment Rankings for Q309, the Netherlands
improved its ranking from eighth,
out of nine key Western European markets
surveyed, to fifth. The new ratings criteria serve to reinforce
our
estimation of the country’s potential due to its strong emphasis on the
regulatory environment, which
we see as a major factor affecting the
business environment for drugmakers. Globally, the Netherlands is
ranked
in 10th position, just below Australia and Canada, out of the total of 71
markets assessed by BMI.
However, 2009 will be a challenging year
economically (especially as unemployment rises and household
expenditure
falls) as well as politically, given the fact that immigration and community
cohesion remain
controversial issues in Dutch politics. Such factors will
combine to result in lower pharmaceutical values
for 2009, with growth
returning to positive in 2010.
The pharmaceutical market is expected to
post just a modest compound annual growth rate (CAGR) of
some 2.43%
through to 2013. Having been worth EUR5.9bn (US$8.7bn) at consumer prices in
2008,
Dutch pharmaceutical expenditure is expected to top EUR6.7bn
(US$8.4bn) in 2013, with US values
falling due to the weakening of the
euro. While an emphasis on generic substitution and other costcontainment
measures will serve to hamper market development, impetus for growth will be
provided by
an ageing population and high prices for novel drugs and
modern healthcare.
Additionally, Dutch law stipulates that all people must
be insured – though up to 5mn people who cannot
afford to contribute
to their own health insurance schemes are covered by the government. In the
longer
term, economic improvement should expand the insurance coverage,
resulting in benefits to
pharmaceutical volumes. However, many are fearful
of consolidation within the insurance sector, as
falling prices favouring
wider-ranging group contracts with healthcare providers. Consolidation of
the
pharmacy sector is also expected, given the rising popularity of
ordering repeat prescriptions online.
In terms of company news, Dutch
pharmaceutical major DSM revealed that it signed a supply deal with
US-based Shire US Manufacturing, the subsidiary company of US Shire pls. The
agreement, effective
from the start of April 2009, covers the manufacture
and supply of a number of specialty pharmaceutical
products, which are
used for chronic and long-term disease treatments, mostly in the area of
mental and
gastrointestinal disorders. Drugs such as Carbatrol
(carbamezepine), Intuniv (guanfacine extended
release) and Lialda
(mesalamine) will be produced at DSM’s facility in the US, instead of
being
manufactured by Shire at its own US plant in Owings Mills. The deal
was signed for an initial period of
five years, but should be extended if
the transfer of manufacturing is deemed successful.
| 
View Cart
