Event sees record exhibitor attendance and is set to return to thriving Spain in 2016
Spanish market pharma trends observed
• Generics will see heavy growth, as in the domestic market they are still under used compared with other EU economies – 18% of value and 38% of volume
o Generics growth and manufacturing margins however are being hindered by the price referencing system in Spain
• Export led growth: in the last 5-years the pharma sector in Spain has shank by one third, but over the same period exports have grown between 30-40%
o With pharma production costs lower than in other European nations manufacturers are well placed to export
o Latin America represents a huge growth market, as does the US and other parts of Europe for larger companies
• APIs and intermediates beyond the $100/Kg threshold represent a good growth area for Spanish firms – with oncology and high potents attracting the attention of many manufacturers
• Spain has the second most biotech companies of any country (over 550) and these present a tremendous opportunity for FDI investment to commercialise these under marketed innovations
• Industry is centred around the dual pharma hubs in Catalonia and Madrid
• Barcelona’s life Science investment has doubled recently as CPhI prepares to visit
o Nearly half (47%) of Spanish pharm R&D is in Barcelona
Amsterdam, 18 December 2015:CPhI Worldwide organised by UBM EMEA, announces the findings from a comprehensive review of the Spanish pharma market following the closing of its most successful ever CPhI Worldwide to date in Madrid last month (October 13-15, 2015). The survey amongst key companies in Spain’s pharma supply and manufacturing sectors shows that, despite recent falls in overall value, the country’s manufacturers are now targeting increased FDI and exports – primarily to Latin America and Europe, but also increasing to the USA.
CPhI Worldwide is a global hub for insight and analysis and is increasing the key barometer of the industry’s future direction and health. Following the event, we have summarised the hot topics and emerging trends in Spain. Some 36,368 professionals and 2490 exhibitors attended CPhI Worldwide in Madrid, and thanks to this success, and renewed buoyancy in the Spanish market, the event will return in Barcelona for 2016 – home to a thriving biotech and manufacturing cluster ripe for investment.
One of the main growth opportunities to emerge from the surveys is that Spain retains an enormous amount of early stage innovations, but has until recently lacked the capital to take these into development and commercialisation. However, with the easing of financial conditions from ‘la crisis’, and initiatives to encourage local and international funding we should see more projects moving into later stage work. For example, the Spanish Bioindustry Association (ASEBIO) stated it is now working towards helping establish ‘fiscal incentives’ for innovation and is encouraging the Government to create ‘centres of excellence’ to fully capitalise on the market’s potential.
Another notable trend reported is that as the overall domestic market shrank, generic exports have continued to grow rapidly (30-40%) over the last 5-years. This trend is forecast to continue, as by European and US standards, manufacturing and labour costs remain highly competitive. Led by the successful international sales from companies like Esteve, Grifols and Gropo, a new wave of SMEs are targeting exports to Europe and Latin America. Whilst some of the longer established companies, with FDA approved GMP sites, are also looking to gain increased traction in the United States.
Farmaindustria, the national association for the pharmaceutical industry, states opportunities are uneven between national and multinational providers. The director general, Humberto Arnés, added: “Our national companies are related in terms of their geographical reach – Europe being the most important [currently] – and there is still much work to do in internalizing them. The industry needs to generate trust from investors to build a predictable Spanish market and export platform. But Spain is well positioned to grow.”
Next year at CPhI Worldwide in Barcelona, a new collated event in Finished Dosage Formulation (FDF)will launch and is designed to bring the entire supply chain together in one global location, from Big Pharma and CMO, to out-licensing specialists, end product distributors, end-user agents, and home markets. In fact, the CPhI findings highlighted that Life Science investment in Barcelona has doubled in recent years and nearly half of all R&D in Spain is located in the region. Across the APIs and intermediates market, companies are also reporting increased confidence in sales growth, particularly for products beyond the $100/Kg threshold, with oncology and high potents attracting the attention of many manufacturers.
Overall, the market remains somewhat ambivalent about generics, with price referencing forcing patented products to match the price of generics on introduction to the market, which is providing significant marginal problems for both product classes. However, in the longer term, with less than 50% of pharmaceutical volumes (38%) and only 18% of value, clearly generics represent a major area of future growth to bring Spain inline with other major European nations – whose use of generics, by volume, averages 55% (25% average by value). This revenue expansion opportunity is also being strongly supported by generic manufacturers moving towards exports and new markets, where there are less price restrictions. “We have held several successful CPhI events in Spain over the last decade, but the sense of optimism and opportunities in the local and international market this year was particularly noticeable. Spain, as our survey notes, is split into two key pharma hubs and its hugely exciting to be moving to Barcelona next year - a region we feel is primed to become increasingly significant within the industry. What’s more, with the growth in finished formulation dosages, it was also the ideal time to introduce a new dedicated zone, more details of which will be announced in the New Year.” Rutger Oudejans, Brand Director Pharma at UBM EMEA.
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Notes to editors
About CPhI
CPhI drives growth and innovation at every step of the global pharmaceutical supply chain from drug discovery to finished dosage. Through exhibitions, conferences and online communities, CPhI brings together more than 100,000 pharmaceutical professionals each year to network, identify business opportunities and expand the global market. CPhI hosts events in Europe, Korea, China, India, Japan, South East Asia, Turkey and Russia and co-locates with ICSE for contract services, P-MEC for machinery, equipment & technology, InnoPack for pharmaceutical packaging and BioPh for biopharma. CPhI provides an online buyer & supplier directory at CPhI-Online.com.
For more information visit: www.cphi.com
The UBM EMEA annual schedule of Pharmaceutical events includes: InformEx (02-04 February, 2016); CPhI Russia (30 March – 01 April, 2016 at JSC VDNH (VVC), Pavilion 75, Hall A, Moscow); CPhI, P-MEC and Innopack South East Asia (06-08 April, 2016 at the Jakarta International Expo- Jakarta, Indonesia); CPhI, ICSE, P-MEC, BioPh and InnoPack Japan (20-22 April, 2016 at the Big Sight Exhibition Centre- Tokyo); CPhI Istanbul (1-3 June, 2016 at the ICC Istanbul Congress Center, Istanbul, Turkey); CPhI China and P-MEC (21-23 June, 2016 at SNIEC, Shanghai, China); CPhI Korea (23-25 August, 2016); CPhI, ICSE, P-MEC and InnoPack Worldwide (4-6 October, 2016, Fira de Barcelona Gran Via, Barcelona, Spain); CPhI & P-MEC India (21-23 November, 2016, BEC and BKC Exhibition and Convention Centres, Mumbai, India).
About UBM EMEA
UBM EMEA connects people and creates opportunities for companies across five continents to develop new business, meet customers, launch new products, promote their brands, and expand their market. Through premier brands such as TFM&A, Internet World, IFSEC, MD&M, CPhI, Cruise Shipping Miami, the Concrete Show, and many others, UBM Live exhibitions, conferences, awards programs, publications, Websites, and training and certification programs are an integral part of the marketing plans of companies across more than 20 industry sectors.
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