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Market |
Healthcare and Medical |
Report Type |
Market Research |
Country |
Portugal |
Published |
5 March 2010 |
Number of Pages |
58 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
The value of Portugal’s pharmaceutical market in 2009 was EUR3.71bn (US$5.22bn), and we forecast slow, but steady growth to the value of EUR4.23bn (US$5.35bn) in 2014. This represents a compound annual growth rate (CAGR) of 2.66% in local currency, but because of a weakening euro, growth in US dollar terms will be much slower, with 0.49% expected between 2009 and 2014. Portugal’s economy did manage to pull out of recession in Q209, but despite this, we believe that recovery will be slow and likely to affect state spending on healthcare. As Portugal’s Prime Minister Jose Socrates settles in to his second term, he has many economic concerns that require immediate attention, meaning health is likely to be a low priority. Unemployment continues to be at a record low, while Portugal’s fiscal deficit slipped above the Eurozone limit of 3% in 2009, having been kept in line during 2007 and 2008.
As for consumers, with reduced spending powers, they are also likely to spend less on self-medication, having a negative impact on growth in the over-the-counter (OTC) sector. However, one area that should benefit from the fall out from the global economic crisis is generic drugs. As both public bodies and individual consumers seek out savings, this area offers significant reductions, especially as prices were dropped as a result of government regulation in September 2008 and due to competition. In addition, a government-backed campaign launched in 2009 has provided institutional support to the sector. Promotion targeting doctors, pharmacists and consumers reminds users that generics are a safer and much cheaper alternative to branded drugs.
In terms of research and development (R&D), Health Cluster Portugal (HCP), a not-for-profit organisation created in 2008 to boost Portugal’s competitiveness in research, manufacturing and marketing, announced in late 2009 that it plans to invest EUR58mn (US$81mn) in two research projects. HCP also announced ambitious plans to triple turnover of its members (excluding hospitals) by 2018, with exportation the key to additional income. While we believe that trade volumes in Portugal will remain subdued in the near future (factors such as competition from low-cost markets hold back export growth), it nevertheless welcomes any initiatives to make Portugal’s domestic industry competitive on a global scale.
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