Recent Study: Canada Pharmaceuticals & Healthcare Report Q1 2013

Fast Market Research recommends "Canada Pharmaceuticals & Healthcare Report Q1 2013" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 02 February 2013

BMI View: The relatively high consumption of patented drugs in Canada in comparison with other developed countries remains a positive sign for multinational pharmaceutical companies to maintain their current sales levels by 2017. Although innovative drugmakers have also experienced government cost containment policies and the patent cliff in Canada, the negative impact of these phenomena is less extreme than that in many other developed countries. The average cost of generic drugs per prescription experienced its first decline in Canada during 2011, indicating that a more competitive environment for generic drugmakers has been formed, which will ultimately benefit consumers.

Headline Expenditure Projections

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/529305_canada_pharmaceuticals_healthcare_report_q1_2013.aspx?afid=201) (http://www.fastmr.com/prod/529305_canada_pharmaceuticals_healthcare_report_q1_2013.aspx?afid=201)

- Pharmaceuticals: CAD25.81bn (US$26.06bn) in 2011 to CAD25.64bn (US$25.64bn) in 2012; -0.5% growth in local currency terms and -1.6% growth in US dollar terms. Forecast downward from Q412 on account of lower than expected new industry data.
- Healthcare: CAD189.92bn (US$192.01bn) in 2011 to CAD196.53bn (US$196.56bn) in 2012; +3.5% growth in local currency terms and +2.4% growth in US dollar terms. Forecast up slightly from Q412 due to new industry data.
- Medical Devices: CAD6.83bn (US$6.91bn) in 2011 to CAD7.12bn (US$7.12bn) in 2012; +4.2% growth in local currency terms and +3.1% growth in US dollar terms. Forecast slightly up from Q412 due to new industry data.

Risk/Reward Rating: The attractiveness of the Americas to multinational pharmaceuticals has declined moderately in BMI's RRRs for Q113. The average score for the region increased from 49.2 in Q412 to 49.4 in Q113. The Americas region continues to rank second-lowest globally with a score of 49.4 out of 100, behind Western Europe (66), Asia Pacific (53) and Central and Eastern Europe (51), but ahead of the Middle East and Africa (44).

Key Trends And Developments

- In November 2012, BMI revised down Canada's pharmaceutical market growth rate forecasting it to contract by 0.5% in 2012, experiencing a 2011-2016 compound annual growth rate (CAGR) of 0.1%. This slow growth is due to a combination of several factors, including patent cliff effect; the cumbersome patented drug approval process; and the provincial and private sector's medicine cost containment policies.
- In October 2012, the Supreme Court of Canada determined that it was legitimate for Glaxo Canada, the Canadian subsidiary of UK drugmaker GlaxoSmithKline during the period referred to in the case, to pay more for drug ingredients than a generic drug maker might pay because of benefits that flow to the unit from its licence agreement with GlaxoSmithKline.

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