Pharmaceutical Executive Europe IMS Supplement - October 2008 - (Page 5) PHARMACEUTICAL DISTRIBUTION products from manufacturers to pharmacies. Direct-to-pharmacy schemes, such as those introduced by GlaxoSmithKline and Pfizer, are de facto a form of direct sales which essentially enable companies to control their commercial terms with pharmacies. The direct sales approach is not without its downsides, particularly in terms of the need to avoid oversupplying the market to safeguard against parallel exporting. Nevertheless, this practice is now significant in a number of markets such as Germany, where it accounts for 17% of pharmaceutical sales (Figure 4). Although the direct-to-pharmacy model is very similar to the single channel system long used in Finland and Sweden, its growth in Europe has significant implications. In the UK, for example, where 25% of value but only 6% of volume will now go through this route, non-participating wholesalers will face increasing pressure to consolidate or change their business model — a challenge that will become more widespread as the direct-topharmacy approach is adopted in other European markets. save on the wholesaler margin, the pharmacy margin, and via manufacturer discounts, thereby halving the cost versus traditional dispensing. Homecare delivery. Popular in the US, homecare delivery first came to the fore in Europe when home healthcare providers were given exclusive Figure 4 Direct sales by manufacturers to pharmacies is significant in some markets. 18 16 14 12 10 % 8 6 4 2 0 01 2006 02 2006 03 2006 04 2006 01 2007 02 2007 Portugal Luxembourg Switzerland Belgium 03 2007 04 2007 01 2008 Germany Austria Italy Finland Sweden Irekand Hungary 2. New approaches to dispensing specialist-driven drugs Specialist-driven drugs are increasingly being managed in a different way to other products, with distribution pathways highly variable by country. In the case of biologicals, for example, there are three basic models: Community pharmacies. At the traditional end of the scale, delivery is primarily via community pharmacies as seen in France and Germany. This is partly the result of local reimbursement issues although, even in Germany, community pharmacies are increasingly focused on specialty therapy areas such as oncology or infertility. Hospital channel. In most European countries, the hospital channel is taking increasing market share, particularly in Slovakia, Finland, the UK, Hungary, France and Italy (Table 1). In countries like Denmark and Italy, it is the primary route for biologicals. The ability to preserve prescribing control and lower price are key drivers here. In the Italian system, for example, the hospital approach allows payers to Spain UK Source: IMS Health Table 1 The hospital channel is growing faster than retail in most European markets. Country 2007 Retail growth const USS % 4.8 4.8 -2.1 3.0 8.3 5.8 5.9 7.6 -7.3 4.7 11.0 33.4 2.2 13.2 13.1 2007 Hospital growth const USS % 10.5 8.3 10.2 11.3 9.3 5.4 8.4 7.4 10.8 15.9 12.5 -7.3 6.5 24.9 8.5 2007 Hospital share USS % 25.5 13.0 30.5 25.5 29.2 26.7 19.7 31.1 18.2 26.1 29.0 18.8 16.9 12.0 19.7 France Germany Italy UK Spain Belgium Switzerland Austria Hungary Finland Czech Republic Romania Norway Slovakia Bulgaria Source: IMS Health, MIDAS, MAT Mar 2008 www.pharmexeceurope.com 5 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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