The European Pharmaceutical Wholesale Industry: - phagro
The European Pharmaceutical Wholesale Industry: - phagro
The European Pharmaceutical Wholesale Industry: - phagro
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<strong>The</strong> <strong>European</strong> <strong>Pharmaceutical</strong> <strong>Wholesale</strong> <strong>Industry</strong><br />
4.2.1 Influencing Factors on <strong>Wholesale</strong>rs’ Sales<br />
<strong>Pharmaceutical</strong> market growth, and therefore the wholesale industry’s competitiveness,<br />
is influenced by a set of different interacting factors, as represented in<br />
Table 3.<br />
Table 3: Factors influencing <strong>Pharmaceutical</strong> <strong>Wholesale</strong>rs’ Sales<br />
Factor Trend<br />
Development of prices for “old” pharmaceuticals 5 Falling<br />
Development of prices for “new” pharmaceuticals Steep increase<br />
Line extension (product diversification) Not assessable<br />
Structural changes Not assessable<br />
Development of margins 6 Falling<br />
Quantity of consumption Slow increase<br />
Share of non-pharmaceutical products Increase<br />
Mail order systems, direct delivery Increase<br />
Source: IPF, IMS Health<br />
<strong>The</strong> first four factors, the so-called elements of growth (IMS Health), measure the<br />
impact of changes in prices of products launched in the market before the base<br />
period, the impact of line extensions and the impact of structural changes on<br />
pharmaceutical sales. <strong>The</strong> effects of the launch of new molecular entities and metoo<br />
products on pharmaceuticals’ sales are documented by the development of<br />
prices of new pharmaceuticals. <strong>The</strong> following sections will refer to these elements<br />
of growth in more detail.<br />
New pharmaceuticals<br />
(except line extensions)<br />
New molecular<br />
entities<br />
Me-too products<br />
Figure 13: Elements of Growth<br />
2004 (base date)<br />
Old pharmaceuticals<br />
New pharmaceuticals 2003<br />
New pharmaceuticals 2002<br />
New pharmaceuticals 2001<br />
...<br />
...<br />
...<br />
Source: IMS Health, IPF<br />
Price changes<br />
Line extensions<br />
Structural changes<br />
5 It may be observed that in some countries a price-index of ex-factory prices exhibits a<br />
flat, if no negative development. In any case, it is significantly lower than the development<br />
of the consumer-price index.<br />
6 <strong>The</strong> terms mark-up and margin are often used similarly. However, the mark-up is calculated<br />
on basis of the ex-factory price (bottom-up calculation), whereas margins denote<br />
the spread between the ex-factory price and the pharmacy purchase price (top-down calculation).<br />
IPF Institute for Pharmaeconomic Research 18
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