BMI View: Austria's skilled workforce and location at the heart of Europe would make it ideal as a manufacturing hub, but the country has largely been surpassed by neighbouring Germany and Switzerland in terms of pharmaceutical manufacturing. Whereas big pharmaceutical companies dominate in terms of revenues and manufacturing capacity in Germany and Switzerland, most local companies in Austria are small-medium enterprises with relatively small revenue streams. Austria is home to a burgeoning biotech industry with local companies becoming acquisition targets for foreign drugmakers.
Headline Expenditure Projections
Pharmaceuticals: EUR6.29bn (USD6.97bn) in 2015 to EUR6.48bn (USD6.94bn) in 2016; 3.15% in local currency terms and -0.5% in US dollar terms. Forecasts unchanged from the previous quarter.
Healthcare: EUR38.4bn (USD42.6bn) in 2015 to EUR40.0bn (USD42.8bn) in 2016; +4.2% in local currency terms and 0.5% in US dollar terms. Forecasts increased from the previous quarter.
|f = BMI forecast. Source: WHO, National sources, BMI|
|Pharmaceutical sales, USDbn||8.096||6.972||6.938||7.027||7.049||7.140||7.380|
|Pharmaceutical sales, % of GDP||1.85||1.88||1.87||1.86||1.85||1.83||1.82|
|Pharmaceutical sales, % of health expenditure||16.6||16.4||16.2||16.1||16.0||15.9||15.8|
|Health spending, USDbn||48.835||42.594||42.806||43.718||44.168||44.980||46.704|
In our Q1 2017 Pharmaceutical Risk/Reward Index (RRI) we have awarded Austria a score of 75.0, up from 73.8 in the previous quarter, which means that Austria ranks second in the region (up from the third place in the previous quarter) and scores only below Germany. Notably, Austria holds one of the highest RRI scores globally due to the inherent rewards and low risks that arise from an ageing population, high per capita spending and stable policy environment for drugmakers operating in the country.
The Expat Insider 2016 survey conducted by online network InterNations ranked expat life in 67 countries with Austria rising to the overall top ten for the first time. The survey found that expats ranked Austria as the top country for healthcare with 82% responders satisfied with the quality of medical care and 79% stated that healthcare is affordable (InterNations).
In July 2016, specialty pharmaceutical and contract research company Sanochemia announced a partnership agreement with Newfield and the University of Graz for the development for cancer treatments based on antitumor peptides and primarily targeting skin cancer. US-based Newfield Therapeutics has acquired technology rights from the University of Graz and both companies will now cooperate on the preclinical development. Financial details were undisclosed.
In July 2016, vaccine maker Valneva announced successful final results from Phase II study with its prophylactic vaccine candidate VLA84 targeting prevention of C. difficile infection (CDI), which is one of the leading causes of healthcare-associated infections. The study met its primary endpoint identifying the optimal dose with the highest seroconversion rate against CDI toxins and confirmed favourable safety profile in volunteers.
BMI Economic View
Austrian economic growth will accelerate in the years ahead on the back government policies aiming to boost household consumption and fixed investment. However, a lack of structural reforms mean that growth will stay relatively subdued.
BMI Political View
Austria's political landscape ahead of the revote for the presidency on October 2 continues to be starkly polarised. A rift with the European Union and Germany will become wider on the back of disputes with Turkey over the EU's migration policy.
The Austria Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
BMI's Austria Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Austria pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Austria, to test other views - a key input for successful budgeting and strategic business planning in the Austrian pharmaceutical and healthcare market.
- Target business opportunities and risks in the Austrian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Austria.
- Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.
BMI Industry View
An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
- Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
- Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
- Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
- OTC Drug Market: OTC sales (USDbn & % of total sales).
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward Index
BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.
The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.