OVERVIEW OF THE PHARMACEUTICAL MARKET IN SOUTH AFRICA
The government drive to support local production and reduce the country’s reliance on imports, in addition to global epidemiological and demographic trends, are all positive factors contributing to long-term growth in the pharmaceutical market. However, deep segregation between private and public healthcare facilities continues to leave the vast majority of the population without medical care. BMI believes this will be rectified through the creation of the National Health Insurance scheme over the next decade, but in the meantime unemployment, lack of education and geographical inaccessibility to healthcare for the wider population will continue to hinder growth in the market.
Headline Expenditure Projections Pharmaceuticals: ZAR27.19bn (US$3.74bn) in 2011 to ZAR29.61bn (US$3.61bn) in 2012; +8.9% in local currency and -3.5% in US dollar terms. Healthcare: ZAR261.51bn (US$36.01bn) in 2011 to ZAR285.26bn (US$34.79bn) in 2012; +9.1% in local currency terms and -3.4% in US dollar terms. Medical devices: ZAR11.43bn (US$1.57bn) in 2011 to ZAR12.19bn (US$1.49bn) in 2012; +6.7% in local currency terms and -5.5% in US dollar terms. Forecast changed due to depreciation of the South African rand.
The South Africa Pharmaceuticals & Healthcare Report features Espicom’s forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
Espicom’s South Africa Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the South Africa pharmaceutical and healthcare industry.
- Benchmark Espicom’s independent pharmaceutical and healthcare industry forecasts to test other views – a key input for successful budgeting and strategic business planning in the South Africa pharmaceutical and healthcare market.
- Target business opportunities and risks in the pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Africa.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
Executive Summary & Industry SWOT
An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect Espicom’s forecast analysis, and taken together with Espicom’s political, economic and business environment SWOTS, it gives a complete overview of market climate.
Snapshot of key market characteristics, including total size of pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as an analysis of the overall regulatory burden.
Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Espicom Industry Forecasts
Forecasts to end-2016 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- Healthcare: Total healthcare expenditure (US$bn), healthcare expenditure (% of GDP), healthcare expenditure per capita (US$), hospital beds (per `000 population), doctors (per `000 population), birth and mortality rate (per `000 population)
- Pharmaceutical market: Drug expenditure (US$bn), drug expenditure (% of GDP), drug expenditure per capita (US$)
- Patented drug market: Prescription drug sales (US$bn), prescription sales (% of total sales), sales broken down by 14 therapeutic areas (cardiovascular, anti-infectives etc.)
- Generic drug market: Generic product sales (US$bn), generic sales (% of total sales)
- OTC drug market: OTC sales (US$bn), OTC sales (% of total sales), sales broken down by product types (analgesics, skin treatments, vitamins and minerals etc.)
- Medical Devices: Medical device sales (US$bn), medical device sales (% of total healthcare market)
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt.
The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of Espicom’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.