Research and Markets: Canada Pharmaceuticals and Healthcare Report Q3 2011: Canadian Pharmaceutical Market is a Refuge for Leading Drugmakers

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/895018/canada_pharmaceuti) has announced the addition of the "Canada Pharmaceuticals and Healthcare Report Q3 2011" report to their offering.

“Canada Pharmaceuticals and Healthcare Report Q3 2011”

Business Monitor International's Canada Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Canada's pharmaceuticals and healthcare industry.

The Canadian pharmaceutical market is a refuge for the leading drugmakers. It is highly unlikely that punitive price controls like those witnessed across Europe over the past two years will be introduced. The market is also underpinned by political stability, unlike many emerging markets, and a recovering economy. However, healthcare reform places downward pressure on margins and patent expiries will compress headline growth. Unique attributes include a highly liberalised advertising environment and a culture of over-medication.

Headline Expenditure Projections Pharmaceuticals: CAD25.75bn (US$24.76bn) in 2010 to CAD26.77bn (US$27.04bn) in 2011; +4.0% growth in local currency terms and +9.2% growth in US dollar terms. Forecast has been revised up moderately from Q211 due to macroeconomic factors.

Healthcare: CAD177.14bn (US$170.32bn) in 2010 to CAD183.21bn (US$185.06bn) in 2011; +3.4% growth in local currency terms and +8.7% growth in US dollar terms. Forecast has been revised down moderately due to analyst intervention.

Medical devices:CAD6.60bn (US$6.35bn) in 2010 to CAD7.02bn (US$7.09bn) in 2011; +6.3% growth in local currency terms and +11.7% growth in US dollar terms. Forecast has been revised moderately due to macroeconomic factors.

Business Environment Rating: In BMI's Business Environment Ratings (BERs) for Q311, Canada remains in second place in the expanded regional matrix, trailing the US by nearly eight points. The ratings criteria serve to reinforce our estimation of the country's potential, owing to a stronger emphasis on the regulatory environment, which we see as a major factor affecting the business environment for drugmakers. However, cost-containment pressures at both federal and provincial level will continue to pose an issue to manufacturers of novel products.

Key Trends & Developments: In May 2011, Pfizer Canada's president, Paul Levesque, demanded that Canada's intellectual property (IP) laws align with European and US standards and allow for patent term restoration (PTR). He also said that drug companies should have the right to appeal when they lose patent challenges. While drugmakers have hinted that stronger intellectual property protection will result in greater research and development (R&D) investment, a report by BMI in January 2011 found the claims to be untrue. Canada's IP rights have increased over the last 20 years, but R&D spending has actually declined to its lowest levels during the same period.

In May 2011, Canada's Valeant Pharmaceutical announced that it is to acquire Lithuania-based AB Sanitas for about EUR314mn (US$442.9mn) in cash, to expand its European branded generics product portfolio.

BMI Economic View: Our Canadian real GDP growth forecast for 2011 has been bumped up substantially to 2.9% from 2.4%. This is mainly as a result of an improved outlook for exports and business investment, and in spite of a slightly less ebullient outlook for the consumer.

Key Topics Covered: