Belgium Pharmaceuticals and Healthcare Report Q4 2009

In BMI's Business Environment Rankings (BER) for Q409, Belgium rose by one place to 7th position in the regional matrix, out of the 9 countries surveyed in Western Europe. While its advanced status, ageing population and high per-capita income should support market development going forwards, annual growth levels are expected to be weak, which is the main reason for the country's unfavourable placement in the matrix. In fact, from a high of EUR4.0bn (US$5.94bn) in 2008, we expect the market to contract, at consumer prices, to EUR3.95bn (US$5.00bn) in 2013. The focus on the encouragement of generics, falling prices of pharmaceuticals and a challenging economic situation will conspire to yield a compound annual growth rate (CAGR) of -0.44% in local currency terms, although the market will continue to grow in volume terms.

The above pressures are resulting in market consolidation, not only in the pharmaceutical industry sphere, but also in wholesale. To this end, in July 2009 European pharmaceutical wholesale giant Celesio acquired Belgian pharmaceutical wholesaler Laboratoria Flandria. The deal, which remains subject to the authorities' approval, will make Celesio the second largest wholesaler in Belgium. The company is also planning to offer new services through co-operation with its Belgian subsidiaries ??