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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$. Source: IMS World Review 2008. Europe: Central and Regional.
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Investment opportunities in the health sector in Europe, focussing on Germany Dr. Simone Breitkopf, BPI Dr. Rudolf Schosser, Consultant
World Pharma Market by Regions 2007 European Pharmaceutical market: 213,1 billion US$ 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 Verycomplexenvironment!
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 Source: German Federal Statistical Office (Destatis), 2008
Price structure 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 Opportunitiesfor Indian pharmaceuticalcompanies?!
Growing Number of Chronic Diseases % of population Source: WHO
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 approach Decision 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 approach Decision to explore market entry Decision to enter market Subsidiary established Market entry research Establish subsidiary Launch of product(s) Obtain marketing authorization + (optional) build up infrastructure
You need … …a localteam in whicheachmemberknowsexactly whathastobedoneattheright time in theright order
You need … …a crewwhich is highlymotivatedandalignedtothegoalofbringingyourdrugontothemarket
You need … ….a captain …a navigatorand …a helmsman…. ….toavoidunnecessarycollisionsandgettheshipsafelytotheharborofdestination (= marketingauthorizationandreimbursement)