EUROPE PHARMACEUTICAL DRUGS MARKET ANALYSIS

The Europe pharmaceutical drugs market is estimated to be valued at US$ 180.2 Bn in 2023 and is expected to exhibit a CAGR of 4.5% during the forecast period (2023-2030).

Analysts’ Views on Europe Pharmaceutical Drugs Market:

Novel drug product approvals and partnerships among pharmaceutical and biotechnological companies is expected to drive the Europe pharmaceutical drugs market over the forecast period. For instance, on April 22, 2020, BioNTech SE, a Germany-based biotechnology company in Mainz, and Pfizer Inc., a U.S based pharmaceutical and biotechnology corporation, announced that the German regulatory authority, the Paul-Ehrlich-Institut, had approved the Phase 1/2 clinical trial for BioNTech’s BNT162 vaccine program to prevent COVID-19 infection. BioNTech and Pfizer are jointly developing BNT162.

 Figure 1. Europe Pharmaceutical Drugs Market Share (%), by Product Type, 2023

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Europe Pharmaceutical Drugs Market – Driver

Collaborations and launch of new products to expand product reach and portfolio

To expand markets internationally, Europe drug companies are focused on launching new products and collaborating with pharmaceutical companies across the globe to expand their product portfolio. For instance, on May 30, 2023, Sun Pharmaceutical Industries Ltd, an Indian multinational pharmaceutical company, headquartered in Mumbai, announced that it has entered into a licensing pact with Philogen S.p.A, a Switzerland based technology company, to commercialize an under-development skin cancer drug in Europe, Australia, and New Zealand. The companies have come together to commercialize Philogen's specialty product Nidlegy, an anti-cancer biopharmaceutical currently in Phase III clinical trials.

Figure 2. Europe Pharmaceutical Drugs Market Share (%), by Country, 2023

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Europe Pharmaceutical Drugs Market- Regional Analysis

Among country, Germany is the fastest-growing segment in the Europe pharmaceutical drugs market over the forecast period. According to an article published in Healthcare- an open access journal on health care systems, industry, technology, policy, and regulation in April 2021,  by constantly inventing and adjusting its laws in linse with these innovations, Germany has consistently maintained its position at the forefront of the digital health transformation. Beginning in 2020, physicians in Germany prescribed approved digital health applications (DHAs), which helped to further expand the pharmaceutical market by making medications easier to access

Europe Pharmaceutical Drugs Market – Impact of Coronavirus (COVID-19) Pandemic

In early 2020, the COVID-19 pandemic began throughout Europe. The pandemic had a devastating worldwide impact, with more than 6 Mn fatalities documented by June 3, 2020, with many medical systems being overburdened by patient numbers. This affected the pharmaceutical supply too.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries in Europe faced problems with the transportation of drugs from one place to another.

However, the COVID-19 pandemic had a moderate impact on the Europe pharmaceutical drugs market. For instance, on April 26, 2022, the Europe Investment Bank (EIB) loaned U.S$ 15 Mn to IRBM- an Italy-based corporation specializing in molecular biotechnology, medical research, and organic chemistry, to help develop its research into coronavirus and other infectious diseases.

On the other hand, according to a report published by PubMed, a search engine accessing the database of references and abstracts on life sciences and biomedical topics, in January 2022, hospital managers and research graduates reported the possibility of medicine shortages arising from the increase in the number of patients requiring mechanical ventilation, in the categories of sedative, analgesic, and paralytic across Europe during the pandemic. Management of hospitals in countries across Europe published a list of ‘Essential medicines at greatest risk of shortage’, which included sedatives opioid analgesics, neuromuscular blocking agents, and vasopressors. Many if not all of these medicines are used in cardiac arrest, which increased in occurrence as a result of COVID.

Europe Pharmaceuticals Drugs Market  Segmentation:

The Europe pharmaceutical drugs market is segmented into Drug Type, Product Type, Application, Distribution Channel, and Country.

Based on Drug Type, The Europe pharmaceutical drugs market is divided between generic and branded medications. The branded category is likely to dominate the market throughout the forecast period, owing to the safety, quality, and efficacy of branded pharmaceuticals.

Based on Product Type, The Europe pharmaceuticals drug market is divided into two categories: prescription drug and over-the-counter (OTC). The prescription drug sector is likely to dominate the market throughout the forecast period, owing to its more hospitalizations , convenience of availability in hospitals, and increased approval for.

Based on Application, The Europe pharmaceuticals drug market is divided into Cardiovascular, Musculoskeletal, Oncology, Anti-infective, Metabolic Disorder, Central Nervous System, Genito-urinary, Gastrointestinal, Respiratory, Haematology, Dermatology, Ophthalmology Diagnostic Services, and Surgical Services. The cardiovascular category is likely to lead the market throughout the forecast period, owing to the greatest prevalence of circulatory illnesses in Europe.

Based on Distribution channel, Hospital Pharmacy, Retail Pharmacy, and Online Pharmacy are the three segments that make up the Europe pharmaceutical drugs market. Due to the growing number of hospitalizations and the rising aging population in European countries, the hospital pharmacy segment is anticipated to dominate the market during the forecast period.

Based on Country, the Europe pharmaceutical drug market is segmented into Germany, France, U.K., Italy, Spain, Russia, The Netherlands, Poland, Switzerland, Sweden, and the Rest of Europe. The German drugs segment is expected to dominate the market over the forecast period and this is due to leading pharmaceutical and biotechnological companies having a strong presence in the region.

Among all segmentation, the product type segment has the highest potential as pharma organizations are progressively moving away from OTC items for novel treatments thereby increasing the demand for prescription drugs. For instance, in June 2022, Haleon was formed when GSK, a global biopharmaceutical company with headquarters in the U.K., spun off its consumer health franchise from Pfizer, ab U.S based  pharmaceutical and biotechnology corporation with headquarters in the United States. Haleon is now a separate British multinational consumer healthcare company with headquarters in Weybridge as a result of Pfizer's sale of its 32% stake.

Europe Pharmaceutical Drugs Market Cross Sectional Analysis:

Among the application segmentation, the cardiovascular segment has maximum potential in Germany owing to the rising prevalence of the disease. According to the data published by Statistics Explained, a guide to Europe statistics, in June 2021, 38,900 heart bypasses were conducted in Germany in 2020; this was more than double the number in any of the other EU Member States (16,400 were conducted in France).

Europe Pharmaceutical Drugs Market : Key Developments

• On March 31, 2023, Sartorius AG, an international pharmaceutical and laboratory equipment supplier, through its French listed subgroup Sartorius Stedim Biotech, signed an agreement to acquire Polyplus-a provider of upstream technologies for cell and gene therapies, based in France for approximately US$ 2.5 billion (2.4 million euros). The acquisition would allow the company to optimize the total process workflow to deliver elevated value for cell/gene and DNA/RNA therapy customers.
• On March 10, 2023, Sumitovant Biopharma, Inc., a technology-driven biopharmaceutical company that specializes in the development and commercialization of new potential therapies for patients with rare conditions and other diseases, announced that it has completed its acquisition of Myovant Sciences GmbH- a lifesciences and biotech company, with global headquarters in Basel, Switzerland, that develops new treatments for infertility in women and prostate cancer in men. The acquisition will allow Sumitovant Biopharma,Inc. to accelerate the development of its product line.
• On June 7, 2023, the U.K government launched two-year pilot program that will allow Wegovy, a weight loss drug manufactured by Novo Nordisk’s A/S- a Denmark based multinational pharmaceutical company, to be begin its clinical trial in the U.K.
• On May 6, 2023, Merck and Co.- a Germany based pharmaceutical company started the Phase 3 trial of their pulmonary arterial hypertension drug Sotatercept.

Europe Pharmaceutical Drugs Market : Key Trends

Better healthcare investments, collaborations among pharmaceutical companies and increasing genetic disorders  drive the growth of market

Due to increasing healthcare investments, collaborations among pharmaceutical companies and an increase in genetic illnesses, the Europe pharmaceutical drug market is expected to experience considerable expansion. For instance, on June 23, 2022, GSK plc, a U.K based pharmaceutical company, announced an investment of US$ 1 million over the next ten years to accelerate research and development (R&D) dedicated to infectious diseases that disproportionately impact lower-income countries. On April 13, 2023, Aspect Biosystems Ltd., a Canada based biotechnology company and Novo Nordisk A/S- a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, announced an agreement to develop bioprinted tissue therapeutics intended to supplant, fix, or supplement natural capabilities inside the body for treatment of diabetes and obesity.

Europe Pharmaceutical Drugs Market : Restraint

             Unfavorable drug regulations

Unfavorable drug regulations by Europe Union represent a major restraint on the growth of the Europe pharmaceutical drugs market. According to an article published in Pharmaceutical Journal on February 24, 2023, The European Federation of Pharmaceutical Industries and Associations (EFPIA), the trade organization for branded drugs,  passed a statement saying proposals would irretrievably sabotage the EU pharma industry and send Europe to the back of the queue for healthcare treatments, clinical research, jobs, and global investment. Considerable resistance from pharmaceutical companies to reverse the changes in the regulatory guidelines can serve as a counterbalance to the restraint.

Europe Pharmaceutical Drugs Market - Key Players

Major players operating in the Europe pharmaceutical drug market include Allergan plc. (A subsidiary of AbbVie Inc.),Novo Nordisk A/S, Boehringer Ingelheim International GmbH, Merck KGaA, GSK plc., AstraZeneca., Baxter, Novartis AG, F. Hoffmann-La Roche Limited, Shire (A subsidiary of Takeda Pharmaceutical Company Limited) and Sanofi.