Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 3) The New Distribution Dynamics Per Troein of IMS Health looks at the changing face of pharmaceutical distribution in Europe. s today’s pharmaceutical sector continues to transform at an unprecedented rate, nowhere are the changes more apparent than in the channels that support the flow of products from manufacturer to patient. In place of the established model is an emerging plethora of new and more direct approaches to distributing pharmaceuticals in Europe: non-retail channels are booming; more patients are receiving their medicines at home via mail order or home healthcare; hospitals are offering more in- and out-patient dispensing; new enterprises are developing to meet the demand. Never has the pace of transformation been so marked. Driven as it is by a number of factors, the visible shift away from the traditional supply chain only adds to the increasing complexity of the overall market. But along with the challenges come fresh opportunities for all key stakeholders involved: the potential for cost savings, stronger value propositions and new ways of working to improve patient care. A requirements — such as the need for cold chain delivery or home-based counselling to help patients understand and adhere to their treatment. And with the bulk of new product development continuing to target specialty areas, the enforced changes on distribution systems will only intensify. A liberal environment Against this background is a parallel move towards pharmacy liberalisation in Europe. What historically has been a strictly regulated sector is now undergoing a period of progressive deregulation, in line with the Figure 1 The specialist driven sector continues to outperform the primary care driven market. 20 18 16 Among the dynamics that are driving change around the channels of pharmaceutical distribution, costcontainment continues to be key as national governments find it harder than ever to curb escalating healthcare expenditures. Many of their interventions have directly impacted distribution and dispensing, particularly in the primary care sector, by increasing the pressure on pricing, lowering margins, and encouraging the use of generics, parallel trade and alternative dispensing routes (such as hospitals). Along with the cost-cutting there has been a clear shift in the make-up of pharmaceutical portfolios, with R&D pipelines increasingly focused on specialistdriven products delivering clear patient benefits and economic value in areas of high unmet need. The impact of this is most apparent in their rising contribution to market growth relative to treatments given in the more saturated primary care setting where the achievement of true innovation is an increasingly difficult goal (Figure 1). The profile of specialist-driven products has given rise to new distribution and dispensing routes that fulfil their more challenging storage and administration % Growth const US$ Key drivers 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 Specialist driven Primary care driven Global market Products 2007 % Share of sales Primary care driven specialist driven 60% 40% % Actual contribution to growth constant US$ Primary care driven specialist driven Source: IMS Health, MIDAS, MAT Dec 2007 34% 66% www.pharmexeceurope.com 3 http://www.pharmexeceurope.com
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Europe IMS Supplement - October 2008 Pharmaceutical Executive Europe IMS Supplement - October 2008 Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 1) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 2) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 3) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 4) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 5) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 6) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 7) Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 8)
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