New Market Research Report: United Kingdom Pharmaceuticals & Healthcare Report Q2 2016

Although we retain our view that the UK will remain a member of the European Union after the Brexit referendum to be held on June 23, uncertainty over the outcome increased in the first months of 2016, and a Brexit would pose significant challenges to the UK and European pharmaceutical industries. The negative implications of a Brexit for the drug industry would include a reduction of scientific funding in the UK, a decrease in patient access to innovative medicines, an increase in market access barriers to multinational drugmakers and delays in the approvals of medicines. Although the UK government's recent decision to strengthen healthcare expenditure over the next few years is in line with our view o f continued growth and rising demand in the sector, the potential effects of a Brexit on the economy pose downside risks to our pharmaceuticals and healthcare sector forecasts.

Full Report Details at
- http://www.fastmr.com/prod/1152822_united_kingdom.aspx?afid=301

Headline Expenditure Projections

Pharmaceuticals: GBP26.20bn (USD40.04bn) in 2015 to GBP26.80bn (USD38.29bn) in 2016; +2.3% in local currency terms and -4.4% in US dollar terms. Forecast revised upwards from last quarter.
Healthcare: GBP155.16bn (USD237.11bn) in 2015 to GBP159.87bn (USD228.38bn) in 2016; +3.0% in local currency terms and -3.7% in US dollar terms. Forecast revised broadly in line with last quarter.

Risk/Reward Index

In Q216 we have revised upwards UK's RRI score to 77.7 from 76.1 previously (out of 100). The UK is still ranked as the most attractive market to pharmaceutical investors in the Western Europe region, followed by Austria (73.8) and Belgium (73.6). The UK's score is boosted by its multi-billion dollar drug market and relatively high sector value growth.

Latest Updates

In March 2016 the European Commission approved Teva Pharmaceutical Industries' acquisition of Allergan Generics, although the decision remains conditional upon the divestment of a number of assets, including the majority of Allergan Generics' business in the UK and Ireland.

In line with our long-standing view that open innovation and new R&D models will supplement or displace the traditional in-house R&D model for new molecules discovery and development, various such new agreements were set recently in the UK as companies attempt to capitalise as well on integrating strong academic research in R&D consortiums, such as The Critical Path for Parkinson's Consortium and the Apollo Therapeutics Fund.

Highlighting the negative implications of a potential Brexit, in February 2016 the European Federation of Pharmaceutical Industries and Association (EFPIA) issued a statement stating that the UK's continued membership of the EU is in the best interests of both the UK's and Europe's pharmaceutical industries.

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