Investment opportunities in the health sector in Europe, focussing on Germany

Dr. Simone Breitkopf, BPI

Dr. Rudolf Schosser, Consultant

 

World Pharma Market by Regions 2007

European Pharmaceutical market:

213,1 billion US$

Source: IMS World Review 2008

 

Europe: Central and Regional

27 countries

493 Mio. population

Pharmaceutical market: 213,1 billion US$

Administration

Legislation

Pharmaceutical regulations

Marketing authorization

Different health care systems

Different health insurance and reimbursement systems

Very complex environment!

 

German Pharmaceutical Market

1.031 pharmaceutical companies

395 biotech companies

Pharmaproduction: 26,2 billion EURO

R&D-Expenditure: 5,8 billion EURO

Turnover in German Pharmacy Market (22,8 billion EURO):

• 17,7 billion EURO Rx-Products

• 2,9 billion EURO „pharmacy only“-Products

Source: BPI-Pharma-Daten 2008

 

Exports and Imports of Pharmaceuticals in Germany

Year Import Export

Mill. Euro +/- % Mill. Euro +/- %

2000 10,353.47 +25.9 15,177.47 +5.9

2001 12,051.17 +16.4 20,478.36 +34.9

2002 19,284.83 +60.0 18,835.18 -8.0

2003 19,327.83 +0.2 22,230.11 +18.0

2004 22,221.42 +15.0 28,681.63 +29.0

2005 25,585.17 +15.1 31,758.85 +10.7

2006 28,366.72 +10.9 36,474.52 +14.8

2007 32,601.23 +14.9 41,748.66 +14.5

Source: German Federal Statistical Office (Destatis), 2008

 

Price structure

4,1

11,8

53,6

16,7

13,8

Manufacturer Wholesaler Pharmacy Tax Rebate

Source: BPI-Pharma-Daten

 

Healthcare Sector in Germany

• 90% of the population is insured in about 220 statutory health insurances (GKV).

• About 10% of the population is insured by 50 private health insurances.

• GKV-Expenditure: 153,6 billion EURO• Medicinal Products: 25,6 billion EURO (16,7 %)

 

Generics market in Germany

• Growing market

• Highly competitive

• Complex reimburse-ment situation

Opportunities for Indian pharmaceutical

companies?!

 

Growing Number of Chronic Diseases

Source: WHO

% of population

 

Growing OTC Market

• Covering pharmacy-only products, freely available products and general health products

• OTC sales trends in 2007 dominated by pharmacy-only products with 82.0% of the market.

• Every fifth non-prescription product sold at pharmacies is not pharmacy-only (percentage sales: 18.3%).

 

Market entry in Germany …

is a rough cruise

requires professionalism

and strong local partners

• e.g. BPI e.V. and BPI-Service GmbH

• knowledgeable consultants and

• service providers

 

Shortening time to market

Sequential approachDecision to explore market entry

Decision to enter market

Subsidiary established

Launch of product(s)

Market entry research Establish subsidiary Obtain marketing authorization + build up infrastructure (in case of greenfield approach)

Parallel approachDecision to explore market entry

Decision to enter market

Subsidiary established

Launch of product(s)

Market entry research Establish subsidiary

Obtain marketing authorization + (optional) build up infrastructure

 

You need …

…a local team in which each member knows exactly what has to be done at the right time in the right order

 

You need …

…a crew which is highly motivated and aligned to the goal of bringing your drug onto the market

 

You need …

….to avoid unnecessary collisions and get the ship safely to the harbor of destination (= marketing authorization and reimbursement)

….a captain…a navigator and…a helmsman….

 

Thank you for your attention