BMI View : Belgium offers a stable pharmaceutical market with high per capita spe nding on medicines. However, drugmakers will increasingly find the government less willing to reimburse expensive, innovative medicines as it struggles to hit its fiscal targets.
Headline Expenditure Projections
Pharmaceuticals: From EUR5.84bn (USD6.47bn) in 2015 to EUR5.89bn (USD6.30bn) in 2016; +0.9% in local currency terms and -2.6% in US dollar terms.
Healthcare: From EUR44.96bn (USD49.87bn) in 2015 to EUR46.13bn (USD49.36bn) 2016; +2.6% in local currency terms and -1.0% in US dollar terms.
|f = BMI forecast. Source: WHO, National Sources, BMI|
|Pharmaceutical sales, USDbn||7.730||6.473||6.304||6.565||6.971||7.399||7.540|
|Pharmaceutical sales, % of GDP||1.45||1.42||1.39||1.36||1.34||1.32||1.30|
|Pharmaceutical sales, % of health expenditure||13.3||13.0||12.8||12.6||12.5||12.3||12.2|
|Health spending, USDbn||58.187||49.869||49.356||52.093||55.946||60.018||61.737|
In BMI's Q316 Western European Risk/Reward Index, Belgium scores 73.6 out of 100, placing the country fourth out of the 15 markets in the region, a drop of one place from its position last quarter. Belgium performs well in the Rewards category on account of its high per capita drug consumption, but is closer to the regional average in terms of Risk due to its high levels of government bureaucracy.
In April 2016, Intrexon formed Intrexon T1D Partners, a joint venture with a select group of external investors led by White Rock Capital Partners, to develop ActoBiotics based antigen-specific immunotherapy to treat Type I diabetes in humans. The objective of the programme is to create an easy-to-take tablet for Type I diabetes patients to halt autoimmune-induced damage, both for early- and late-stage patients, to reduce the likelihood of insulin dependence.
In April 2016, Zambon and its partner Newron Pharmaceuticals have launched Xadago (safinamide) in Belgium for the treatment of mid- to late-stage Parkinson's disease (PD). Following the launch in Switzerland, Germany, Spain and Italy, Xadago is now available in Belgium as add-on therapy to a stable dose of levodopa alone or in combination with other PD therapies for mid- to late-stage fluctuating patients.
BMI Economic View
Belgian real GDP growth will remain below eurozone averages in 2016 and 2017, as structural labour market reforms drag on private consumption. These same reforms are necessary and should eventually boost longer-term growth. Against this backdrop, we have downgraded our forecasts for real GDP growth to 1.4% in both 2016 and 2017, from a 1.6% forecast previously for both years.
BMI Political View
The Belgian government will struggle to develop adequate responses to elevated security threats, rising Flemish nationalism and the threat of another economic downturn given the country's dire fiscal dynamic. Reflecting this, Brussels was the target of multiple terrorist attacks on March 22, which killed over 35 and injured over 300. The fight against extremism will be one of the key policy challenges for Belgian governments over the next few years.
The Belgium 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 Belgium Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Belgium pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Belgium, to test other views - a key input for successful budgeting and strategic business planning in the Belgian pharmaceutical and healthcare market.
- Target business opportunities and risks in the Belgian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Belgium.
- 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.