2013-08-28 08:34:21 - New Healthcare research report from Business Monitor International is now available from Fast Market Research
Medicine price reductions and a slowing economy will continue to place downside pressures on pharmaceutical firms in Australia. Contributing to this, the government is looking to provide the population with affordable and sustainable pharmaceutical subsidies. However, the listing of new drugs, coupled with rising demand for pharmaceuticals due to the ageing population, will continue to provide both generic and innovative drugmakers with opportunities.
Headline Expenditure Projections
* Pharmaceuticals: AUD13.25bn (US$13.73bn) in 2012 to AUD13.64bn (US$13.43bn) in 2013; +2.9% in local currency terms and -2.1% in US dollar terms, due to exchange rate fluctuations. Forecast downgraded from Q313 due to reassessment of data.
* Healthcare: AUD135.7bn (US$140.5bn) in 2012 to AUD142.0bn (US$139.8bn) in 2013; +4.6% in local currency terms and -0.5% in
US dollar terms, due to exchange rate fluctuations. Forecast broadly in line with Q313.
Full Report Details at
- www.fastmr.com/prod/670611_australia_pharmaceuticals_healthcare_ ..
Australia's Pharmaceutical Risk/Reward Rating (RRR) score for Q413 is 68 out of the maximum 100 in our newly improved RRR system. The country scored above average for all indicators and sub-indicators including overall market expenditure, sector value growth, pensionable population. With this high score, Australia is ranked third, behind Japan and South Korea out of the 19 key Asia Pacific markets.
Key Trends And Developments
* In July 2013, New Zealand-based healthcare distributor Ebos completed its acquisition of Australian pharmaceutical wholesaler Symbion for NZD1.1bn (US$856mn). The company stated that, with the transaction, its annual sales are expected to increase from NZD1.5bn to NZD6.0bn, and Ebos will become the third-largest company in New Zealand by revenue.
* In June 2013, Tenya Plibersek, Minister For Health and Medical Research, announced the listing of new drugs and extended listings, including cancer treatments: Bristol-Myers Squibb's Yervoy (ipilimumab), Janssen's Zytiga (abiraterone acetate),Pierre Fabre's Navelbine (vinorelbine) and other treatments: Janssen's Xarelto (rivaroxaban), and abortion drugsLinepharma (mifepristone) and GyMiso200 (misoprostol).
* In May 2013, the ruling Australian Labor Party (ALP) revealed its budget for fiscal year 2013/14 (July- June), with a revised forecast for the budget to return to surplus in FY2016/17. Key initiatives concerning the pharmaceutical and healthcare sector include:
* AUD19.3bn (US$18.8bn) over the next seven years for the National Disability Insurance Scheme
* An additional AUD691mn (US$672mn) over five years on PBS listings (new, amended or due to price increases)
BMI Economic View: Australia's Q113 GDP came in at an annualised rate of 2.5% quarter-on-quarter (qo- q) in seasonally-adjusted terms, marking a slowdown from the growth rate of 3.2% recorded in the previous quarter, with the performance indices across manufacturing, services and construction all contracting. While the manufacturing sector has since experienced some reprieve due to the recent depreciation of the Australian dollar, we believe that this is will prove insufficient for the sector to regain its competitiveness. As such, we expect that the recent bounce in the Australian Industry Group's manufacturing performance index in June is unlikely to last, and expect industrial production to slow to expand at 1.5% year-on-year (y-o-y) at end-2013 from Q113's expansion rate of 4.2%.
BMI Political View: In a surprise leadership ballot for the ruling Australian Labor Party (ALP) on June 26, Kevin Rudd was re-installed as Prime Minister, while ousted Julia Gillard retired. The return of Kevin Rudd is likely to help boost the ALP's popularity ratings in the near term. However, we do not expect the new administration, which is likely to ramp up public spending, to be successful in preventing further economic deterioration. Furthermore, we believe that this leadership switch has further increased political uncertainty, and we see growing risks of another minority government outcome in the upcoming election.
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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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