British Pharmaceutical Market to Reach $31.7 Billion by 2020

Monday 7 October 2013, Amsterdam

A growing disease burden, universal coverage and good access to healthcare facilities are boosting the UK healthcare market; but increasing use of generics and government cost-cutting measures to reduce expenditure are restricting further growth, says research available on ASDReports.

According to this new report, the UK pharmaceutical market was worth $24 billion in 2012 and is forecast to reach $31.7 billion by 2020, at a Compound Annual Growth Rate (CAGR) of 3.5%. The segments that dominated the market in 2012 were Central Nervous System (CNS) drugs, along with cardiovascular and respiratory system drugs.

The medical device market is also forecast to grow, from $12 billion in 2012 to $17.5 billion by 2020, at a CAGR of 4.8%. In 2012, the major market shares were ophthalmic devices ($1.4 billion), orthopedic devices ($1.4 billion), wound care management ($1.1 billion), cardiovascular devices ($1.1 billion) and drug delivery devices ($1 billion).

Joshua Owide, Director of Industry Dynamics, says: “With the availability of reimbursement, advances in medical technology and growing disease awareness allowing for early diagnosis, the UK’s medical device market is expected to grow significantly in the near future.

“Furthermore, structural reforms in the healthcare system and sufficient infrastructure, in addition to easily accessible healthcare facilities and a straightforward reimbursement process, are ensuring a positive healthcare landscape in the UK.”

However, increasing generic substitution and cost-cutting measures adopted by the British government and the National Health Service (NHS) have had a negative impact on market growth. In 2013, the Department of Health announced plans to cut drug prices by 10–20% on approximately 10% of branded medicines not covered by the voluntary Pharmaceutical Price Regulation Scheme (PPRS).

“These price cuts will adversely affect the revenues of branded medicine manufacturers in the UK. What’s more, generics are priced lower than patented drugs, which saw a decrease in the overall value of the UK pharmaceutical market,” concludes Owide.