DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c84506) has announced the
addition of "Canada Pharmaceuticals & Healthcare Report Q1 2008" to
their offering.
The Canada Pharmaceuticals and Healthcare Report provides
independent forecasts and competitive intelligence on Canadas
pharmaceuticals and healthcare industry.
The Canadian drug market remains robust and is considered by the
author to be one of the best environments in the world for a drugmaker
to operate in. In 2006, the pharmaceutical market reached a value of
US$18.6bn, and, going forward, the author expects sales to be powered
by generics. Over the next five years the report forecasts a compound
annual growth rate (CAGR) of 7.68% bringing the total value of the
generics sector to US$5.5bn. This compares to an overall market CAGR
of 5.07%.
However, as discussed in detail in the Q108 Canada Pharmaceuticals
& Healthcare Report, generic sales are being buoyed by high prices,
despite the presence of a salubrious and competitive manufacturing
industry. The primary problem appears to be the failure of pharmacies
to pass on discounts offered by drugmakers to the end-payer. A study
by the Patented Medicines Price Review Board (PMRB) in June 2006
concluded that retail prices for generic drugs were higher in Canada
than in 10 out of 11 comparable markets. However the failure of
pharmacies to address the situation, means that the authorities will
probably be forced to. Both Ontario and Quebec have recently lowered
the maximum price ceiling for generics drugs, in order to combat
perceived price gouging.
Meanwhile, it has been a busy quarter in terms of company
activity. Probably the biggest event was the US$900mn acquisition of
Canadian biotech Aspreva by Swiss pharmaceutical producer and
wholesaler Galenica. The purchase is one of the largest ever in the
Canadian pharmaceutical sector and should provide a ringing
endorsement for Canadas biotech industry, often criticised as a
difficult environment to work in. Rather than developing novel drugs,
Aspreva concentrates on finding new indications for existing drugs,
often in neglected or rare disease areas.
In the new methodology for Business Environment Rankings - which
gives stronger emphasis to the regulatory environment, and also
factors in country-specific economic and political indicators - Canada
ranks in second position, in the Americas region and third globally.
This is primarily because of excellent Country Risk Indicators,
including low corruption and a stable political environment, solid
growth in the pharmaceutical market, and a generous government
reimbursement system.
Companies Mentioned:
-- Apotex
-- GlaxoSmithKline
-- Merck & Co
-- Novartis
-- Pfizer
-- Sanofi-Aventis
For more information, visit
http://www.researchandmarkets.com/reports/c84506
Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980
Copyright Business Wire 2008
