European Austerity Drama May Likely Spur The Pace But Not Change The Strategic Plot Line For Pharma
Price cuts and austerity measures made 2011 a bleak year for European pharma. These dynamics are more severe but not new, and likely will accelerate firms’ existing geographic expansion and market access strategies.
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Europe’s growing reimbursement hurdles and falling prices, compounded by a currency and sovereign debt crisis, mean the region’s no longer a strategic priority for Big Pharma. But while major pharmaceutical firms have sufficient scale and reach to continue to move jobs abroad and step up their emerging markets activities if conditions don’t improve closer to home, most of the rest of industry’s smaller commercial players – including the Big Biotechs – don’t.
The Greek government passed a series of measures aimed at cutting spending on patented medicines, but generics may only take off slowly as the country favors domestic firms.
Ipsen's restructuring in France and the U.S, and European austerity measures, lead to a series of charges against 2011 profits, but drug sales increase 5% in the year.