RNCOS

HealthCare Industry Research

UK Pharmaceutical Industry Loosing it's Shine
Thursday, May 08, 2008

The UK pharmaceutical companies do not consider UK a conducive market to invest in and cutting down jobs and investment in R&D.

According to a research jointly conducted by Association of the British Pharmaceutical Industry (ABPI) and Confederation of British Industry (CBI), UK pharmaceutical companies do not see UK as an appropriate place to invest in research and development (R&D) programs and have lost confidence in the industry, as reported by CBI

According to the research, three-quarter of pharmaceutical companies are not satisfied with present market environment in the country. Only 1% of companies expect situation will improve while 83% believes it will get worse. Over 35% of companies are expecting to cut down in the investment for research and development, which currently stands at £4 Billion yearly. Besides, number of clinical trials companies in the UK is thinking to cut back investment to half (46%) of companies.

Decline in the usage of innovative drugs in the country as compared to rest of European countries is perceived as the prime reason for lack of confidence in the companies. Besides, the government withdrew from 2005 five-year agreement on pricing. It is said that industry's success largely depends on this agreement. Obliviously, lesser confidence is prompting pharmaceutical companies to cut down in jobs and investment in research development programs.

High tax regime for pharmaceutical companies in UK is also affecting the purchasing power of consumers. Pharmaceutical companies are utterly dissatisfied with government's poor measures to reduce impact of financial crisis in the country.

Nevertheless, UK still holding status of world's leading manufacturer of innovative medicine after USA and will continue to attract higher investment in research and development sector against other European countries but its position gradually declining. Developing economies like Brazil, India, China and Russia are wooing investors to conduct research and development.

According to a research analyst at RNCOS, "The UK pharmaceutical industry was one of the successful industries in the country but now it is gradually losing business and becomes volatile. The industry is the driving force for UK's economy to remain as a value-added economy in the world. Hence, pharmaceutical companies lack of confidence in the industry should be a great concern for the government."

posted by RNCOS @ 1:02 PM,

Generics to Capture 23% Pharmaceutical Market in Brazil by 2011
Wednesday, May 07, 2008

With big government support, generics is expected to occupy 23% of total Brazilian pharmaceutical market by 2011 and will emerge as one of the largest generics markets in the world, predicts RNCOS.
A market research report "Generic Drugs Market in Brazil (2007-2011" by the leading market research company RNCOS says that in terms of sales value, generics occupy nearly 11.8% of the Brazilian pharmaceutical market (as of 2007). At present, Brazil is the largest generic drugs market in Latin America and due to its strong growth potential, the country is expected to become one of the world's largest generics market by 2011, accounting for 23% share in the total Brazilian pharmaceutical market.

The report cites generous government support to the pharmaceutical industry through implementation of various regulations such as generics law in 1999 and first marketing authorization in 2000 by the government as the major reason behind the strong growth observed in the Brazilian generic drugs market. Moreover, the pharmaceutical regulatory agency ANVISA has framed new regulations according to which, all drugs present in the Brazilian market will have to prove their bioequivalence or see withdrawal by 2014.

Other than the government support, patent expiration of many blockbuster drugs is also influencing the growth of generics in Brazil, says the RNCOS report.

Because of this strong growth, many international players are positioning themselves to leverage from the soaring Brazilian generics market, which is currently dominated by the domestic generics manufacturers, says the report. The research anticipates the investment in the country to grow substantially and reach around US$ 350 Million in short term.

However, says "Generic Drugs Market in Brazil (2007-2011)", though the generics market of Brazil is growing phenomenally, there are some challenges which are hampering the growth curve, such as low prescriptions from the private sector, low penetration levels in the private sector, and prevalence of cheaper non-bioequivalent "similar drugs".

The RNCOS research provides latest and detailed account of the generic drugs industry in Brazil. It analyzes the factors fuelling growth in the Brazilian generics market, reasons behind the large scale entry of foreign players into the country, growth prospects of the market, and market trends being observed in the country.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM572.htm
Current Industry News: http://www.rncos.com/blog

posted by RNCOS @ 12:36 PM,

US - Prescription Drugs Witnessed Slowest Growth in 2007
Saturday, May 03, 2008

Prescription drugs sale grew by 3.8% last year, touching lowest level since 1961, due to high prices and emergence of generic drugs, says IMS Health report.
According to the data released by IMS Health, a health research firm, prescription drugs sales in the US grew by 3.8% last year, which was lowest since 1961, as reported by Reuters

IMS also revealed that the total revenue earned by prescription drugs in 2007 was $286.5 Billion and the drug distribution volume grew 2.8% in 2007 against 4.6% a year before. Branded drugs were worst hit with loss of $17 Billion but boosted growth in the prescription of generic drugs by 10%. In general, the total share of generic drugs in distribution of drugs surged to 67.3% last year.

Prescription drugs' market share in the total healthcare cost is very less because they are very expensive and unaffordable to poor people. Indirectly, high drug prices are escalating the cost of healthcare and as a result, the demand for prescription drugs is decreasing.

Another reason for slow growth in sales of prescription drugs was product withdrawals from market, safety issues, and warning issued by the US Food and Drug Administration. Besides that, patents of many well-known branded drugs expired that led to the entrance of cheaper and affordable generic drugs in the market.

Moreover, balancing of YOY growth from the federal government's Medicare Part D program for Medicare-eligible people and lesser approvals of new products also hampered the prescription drugs sale. The Medicare Part D program, implemented in 2006, impacted growth positively in that year and became a base for the resumption of moderating growth trend in 2007.

Researchers at IMS Health predicted decent annual compound growth rate from 3% to 6% for the US pharmaceutical industry's sale by 2012. They also revealed that branded products worth $13 Billion are expected to face competition from their cheap counterpart generic drugs.

According to a research analyst at RNCOS, "Presently, the US pharmaceutical industry is witnessing slow growth in prescription drugs sales. Poor pricing regime is making drugs unaffordable for poor and local people. High prices of prescription drugs are forcing people to purchase un-prescribed drugs, putting their life in danger."

posted by RNCOS @ 4:12 PM,

Drugs to Undergo Rationing in UK
Monday, February 11, 2008

The committee of MPs in the United Kingdom has decided to bring about rationalization in the gradation of drugs, depending upon their potency and cost efficacy.

Drugs should undergo a process of rationing for greater accuracy in the National Health Screening (NHS). Ministers should vigorously back the National Institute for Health and Clinical Excellence (Nice), which has a pivotal role in marking out the worthy ones, according to MP committee in the UK, as per the news published by Guardian.

MPs suggest that all the drugs should be given an appraisal by Nice the moment they are launched in the market. Those drugs that work efficiently and are still cheap would be directly given by the NHS. Medicines that are more expensive would have to undergo a full appraisal that could require more than a year's time. This will prove highly beneficial as it would encourage many drug companies to label lower prices for their drugs.

But Nice was finding it difficult to stamp its label by deciding the best of drugs. It's because, the health service in the UK is inhibited by inadequate resources and mounting demand. Besides, there is a wide array of choices in drugs and the technologies employed. On the contrary, serious problems were found in the working of the appraisal group itself. The decisions on rationing were not even remotely based on empirical data and not related directly to pressures due to the NHS budget.

Eventually, a string of reform measures were decided upon, with plans of "at launch" appraisal of all medicines, to select the most clinically-effective and cost-efficient ones for immediate availability.

However, this drive by parliament for drug rationing has disappointed drug manufacturers. Drug firms contend that in Europe, British patients already have the slowest reach to new medicines and such rapid evaluation of medicines with stifling costs will only worsen this problem.

A RNCOS Research Analyst said, "The UK health industry is determined to bring about reforms. Its NHS program for the health sector will pull down the price of drugs. These reform moves are boosting the confidence of not only consumers but also the health industry. Poor people can thereby avail medical facilities at nominal charges and this will tremendously boost the image of the UK health industry."

posted by RNCOS @ 5:35 PM,

Russia to evolve as nanotechnology hub by 2015
Friday, February 08, 2008

Russia is trying every move to strengthen its position in the global nanotechnology market. So the government is stepping up investment into the sector to lead it to the forefront.

The nanotechnology production from Russia is projected to increase upto minimum one trillion rubles annually, by 2015. Andrei Fursenko, Education and Science Minister of Russia, stated at a news conference, subsequent to government meeting on January 17, 2008, as reported by Prime Tass.

In December last year, the Russian Education and Science Ministry proposed an agenda regarding the development of nanotechnology industry of the country till 2015. Investment in the industry would be Rubles 106.4 Billion by 2015. Viktor Zubkov, the Prime Minister of Russia, informed that he wants Russia to lead in nanotechnology global industry and hence, almost Rubles 20 Billion will be invested in nanotech program this year, as reported by Prime Tass.

The plan intends to create, by 2011, an aggressive research sector which in turn will ensure increased productivity of nanotechnology products and entrance of Russian companies into overseas markets during the period 2012-2015.

The motive behind this aggressive investment lies in the Culture and Science Ministry's wish to create an emulous nanotechnology market in the country soon. Moreover, they are looking forward to use nanotechnology as basic foundation for weapons of modern era, defensive as well as offensive. Nanotechnology has already found its application in advanced industries like medicine, space research, transport and telecom and therefore, the government wants to encourage this industry by investing more for its growth.

Russia has comparatively less developed nanodevices and the research is also not on large scale and this is the reason why the need for huge investment has been identified. The exploitation and categorization of nanoparticles needs expensive equipments. Furthermore, the concentration is on metallurgical research to produce nanodevices inclusive of production of nanocrystalline constitution which would require huge investment.

According to Research Analyst at RNCOS, "The huge investment in Nanotechnology industry by government is planned to ensure competitive stand of Russia in foreign markets and to firm up its position on global platform by evolving as nanotechnology hub. Along with this, it would lead to technical advancement in hi-tech areas like medicine and telecom in Russia for the betterment of the country."

posted by RNCOS @ 5:26 PM,

New Rules to Check Medicare Fraud
Wednesday, February 06, 2008

Rampant fraud practices by medical equipment suppliers in the US medical sector have resulted in severe losses for the government compelling it to initiate new rules to check them.

The US Department of Health and Human Services is taking punitive actions against suppliers of medical equipment that cost hundreds of millions of dollars to taxpayers, reported Nationaljournal.

Medicare officials allege that in Los Angeles County alone, fraudulent billing of the government by suppliers exceeds $300 Million. The trend is especially pronounced in the urban regions of Southern California and South Florida with a high concentration of elderly Medicare recipients.

Government accreditation of equipment suppliers and fixing of prices through a bidding process have now been made mandatory. The new rules have prompted some medical equipment suppliers to threaten to back out of Medicare as they think the rules are just too harsh.

In the past, the process used to require the suppliers to apply to the government for participation in the program, face inspection and conform to general standards for operating a legitimate business. But from 2007 onwards, Medicare increased the frequency of inspections and suppliers had to renew applications every three years. However, ample advance notice enabled suppliers to deceive inspectors about legitimate operations and close up shop prior to the inspectors' arrival.

Prior to 2007, a single screening and inspection for suppliers was required at the time of applying for a Medicare billing number. Despite claiming to be legitimate business, Medicare was often billed by suppliers for equipment never delivered, or never prescribed to or needed by patients.

The new rules however require a payment for applying to one of ten accrediting bodies. The accreditation process involves more stringent background checks, greater frequency of inspections and shorter notice. In case of any suspicions of fraud or potential for it, for example, a manager's conviction for felony in the past five to ten years, the supplier may be dropped from the program.

A Senior Research Analyst at RNCOS attributes the crisis in the US medical sector to numerous frauds involving the supply of medical equipment and said, "These have cost the government dearly in terms of monetary losses. But with the US government initiating new rules in the medical sector, medical equipment suppliers will be subject to more stringent checks. The move is expected to put a halt on the scams in the US medical industry, regarded as a sensitive sector for reliability."

posted by RNCOS @ 4:10 PM,

Chinese Healthcare Industry in Dire Need of Reforms

The Chinese healthcare industry is beset by a variety of problems depriving much of its population of basic healthcare services, calling for reforms in the health sector.

China's Health Minister, Chen Zhu's speech at a Beijing forum on Monday, January 7, 2008, highlighted the difficulties China's healthcare system is facing in light of the escalating economic progress and its population of 1.3 Billion people, as reported by Reuters.

The Health Minister revealed the expenses China has been bearing in an attempt to prevent the failure of its ailing system. Despite a 277% hike in health expenditure to Yuan 63.1 Billion ($8.7 Billion) in 2007 from the previous year, the threat of multiple infectious and chronic diseases continues to loom over its population.

Hospitals are raising premiums for medical care and prescriptions to exorbitant levels. With deregulation of the healthcare industry, scandals have become rife in the form of overcharging, fake drugs and malpractices.

Much of the population of the world's fourth largest economy finds it unable to afford the costs of consulting doctors and hospital stays. Along with corruption and inaccessibility, it has grown into a potential threat for social unrest also.

Industry experts identify the problems as the failure of public medical and health agencies to adapt operating mechanisms to public needs, the lack of improvement in the ability of health personnel, and the backwardness of the health insurance system.

The numerous problems plaguing the Chinese healthcare industry has prompted the government's top health official to put emphasis on equal access to basic healthcare service for all citizens. This would mean that market concerns should not take precedence in China's health service in order to prevent inequality and negligence of the huge underprivileged rural masses.

The minister promised to set a deadline of 2010 to put in place a framework for basic medicare network as a means of bridging the growing divide in medical services for various income groups and regions. The main objective of this is safe, effective and affordable healthcare services for all citizens.

A Research Analyst at RNCOS opines, "Poor infrastructure is plaguing the Chinese health industry with people being deprived of proper health services. However, with the Olympics around the corner making reforms necessary in the health industry, the government's move towards equity in the healthcare industry will improve the reliability of China's health industry."

posted by RNCOS @ 4:05 PM,

SA - Health Minister Asks Hospitals Not to Raise Tariffs
Saturday, February 02, 2008


The proposed price increase in the tariffs of the private hospital groups is affecting the growth of the industry and people below poverty line would suffer the most.
The Health Minister of South Africa, Dr Manto Tshabalala-Msimang, asked the private hospitals not to put into practice the proposed price increase in tariffs for this year. Manto also said that the matter is under-discussion with the health department after receiving complaints of excessive increase in the tariffs of the hospitals, as reported by Allafrica.

The rise in the tariffs of the private hospitals is due to their unwillingness to discuss tariffs that are affordable to medical beneficiaries. The Council for Medical Schemes warned to take legal action against the private hospitals if they would not retreat from their stand of tariffs rise in the range 8% to 33%.

Industry experts also condemned this action of the private hospitals and believed that it is absolutely wrong to exploit cross subsidies in such a manner. On the other side, most of the private hospitals are insisting for rise in theatre and ward fees to offset the shrinking of profits they received from discounts or price hike on surgical equipments.

Steven Harrison, Senior Strategy Advisor at Council for Medical Schemes, said, "High costs impact on the sustainability of the medical aid environment. It is high time that rates are reviewed and practices must be challenged if they are found to be unlawful or unjustifiable," as per the news published by Thetimes.

As per industry experts, the increase in private hospital tariffs is not in the interest of the nation and reflects hospitals indifference towards the national health system. The rise indicates towards the grim aspect of the hospitals and how irrationally the private healthcare segment works. The massive subsidies private hospitals receive on the medical and surgical equipments are also exposed. The evidences are indicating that the rebates hospitals get is not passed onto the patients.

According to a Research Analyst at RNCOS, "The healthcare sector is one of the fastest growing sectors in South Africa but private hospitals are halting the growth of this industry. They are creating an unfavorable environment that could hamper the growth. The price increase is not good for the people living below the poverty line which constitute the biggest section of the country’s population."

posted by RNCOS @ 4:25 PM,

Ontario Announced $150 Million Investment in Biotech Industry
Monday, January 28, 2008


Ontario's provincial government announced investment of $150 Million in the biopharmaceutical industry to attract research and development, which ultimately boost the economy of the province.
The Provincial Government of Ontario, the most populated province of Canada, announced on January 9, 2008 that it would spend $150 Million to attract biopharmaceutical research companies in the province, as reported by Reuters.

The biotech industry is growing at a rapid pace in the province. Therefore, investment by the government in the health research is essential for overall development of the biopharmaceutical industry. Investment is also essential to boost the growth in other sectors and economy of the province and cumulative growth of the pharmaceutical industry of Canada.

In contrast, the New Democrats are strongly criticizing this plan of the government. They are calling it unfair to provide such a big amount to an industry which is already running in profits. Taxpayers' money should not be diverted to profitable drug manufacturing companies, particularly those that spend a big proportion of money on marketing of drugs rather on research and development (R&D).

The industry experts have welcomed the government's decision and believe that it will make Ontario a big player in the rapidly growing biopharmaceutical industry. Moreover, it will also attract and retain investment in the industry.

Other positive impacts of the investment are that it will create more jobs in the field of research by facilitating companies to look for grants, financial assistance, pardonable interest loans and investment for developing infrastructure, training and research. Correspondingly, the lucrative jobs in the pharmaceutical industry will support new discoveries for treatment of diseases affecting the health of the country's people. It will also help in improving the quality of life in the province and boost the economy.

Around 31 big pharmaceutical companies out of top 100 of Canada's corporate R&D companies are in Ontario. In 2006, Ontario invested around $550 Million in various segments of healthcare, like antibiotics, development of new vaccines and cancer treatments.

According to a Senior Research Analyst at RNCOS, "The health sector of Ontario is one of the best in the country and is among the best world-class research sectors. Initiatives like the recently announced investment program by the Ontario government will strengthen the tie-up between researchers and the industry. It will also create new job opportunities and improve the condition of health services in the province."

posted by RNCOS @ 6:16 PM,

Health Screening Programme in UK Aims at Disease Prevention
Tuesday, January 22, 2008

Gordon Brown has recently declared his government's plans to initiate a National Health Screening programme for male Brits to fight the life threatening diseases.
The British Prime Minister Gordon Brown, on January 7, 2008, declared his government's plans to start a National Health Screening programme for its male citizens to counter the growing menace from some major life threatening diseases, according to a news release by AFP.

Hailing the national screening programme as unique, British Government officials reiterated its commitment to improved preventative health service in Britain. Gordon Brown further added that the health screening programme would offer every adult male citizen a health MoT which would help keep major diseases at bay.

A revamp of the National Health Services (NHS) appears to be in the offing, with the Prime Minister calling for a change in the functioning of the NHS by its 60th year of operations. The focus would be on preventing disease, as against treating them. With a view to making the services more personalized and check the augment of disease, the health screening programme in Britain will offer a regular dosage of information to its citizens and medical practitioners in Britain.

GPs, or General Practitioners, of the patient or similar service providers would conduct the health screening programme in Britain, and cover a range of blood tests, ultrasound scans and electro-cardiograms (ECG). These tests would enable the NHS to achieve its personal and preventive healthcare programme.

Heart failure in the UK affects 6.2 Million Britons, and 200,000 of the number succumb to the disease every year. The disease accounts for a fifth of all hospital patients in Britain, prompting health societies calling for new healthcare plans.

The new health programme would go a long way in checking early deaths, feel industry experts, and promote long-term good health, and level health inequalities in the UK. The health screening programme will simultaneously target the removal of hospital superbugs like Methicillin-resistant Staphylococcus aureus (MRSA) and Clostridium difficile.

As per a Research Analyst at RNCOS, "The awareness of the need to keep good health amongst Britons is growing. The UK healthcare industry covers a wide gamut of product types and healthcare uses. With the declining health of Britons, the health programme in the UK is receiving much political attention, and urgent reforms in the sector are called for. The new healthcare programme hopes to achieve the basic demands of the UK health sector."

posted by RNCOS @ 6:19 PM,






Other Blogs

Previous Posts

Archives

_______________________

Subscribe To Feeds



Subscribe with Bloglines

Add to My Yahoo!


























Powered by
day spas
hit tracker