French pharma exports up 9.2% in 2005, and make up 41% of drug sales

France's pharmaceutical exports rose 9.2% in 2005 to 16.7 billion euros ($21.27 billion), or 41% of total drug sales last year of 40.5 billion euros. Turnover of reimbursable drug products in the general medical sector increased 6.6% to 19.0 billion euros compared with 6.2% in 2004 and 6.1% in 2003. Sales in the hospital segment of the market stagnated owing to massive transfers of products into the general medical sector, especially erythropoeitin drugs. Drug exports into the European Union rose to 9.1 billion euros last year, to account for 54% of all French exports compared with 969.0 million euros, or 43.7% of total foreign shipments in 1990.

The French pharmaceutical industry body, the LEEM, says the sharp increase reflects the European reorganization of drug production in the context of the greater clarity of the French sector's policy. However, the LEEM describes the current political context as less favorable to growth. The USA became the main export market in 2005 because of the US dollar's weakness against the euro, followed by Belgium and Germany.

Since 1995, France has became the EU's leading drug producer with 250 production units across the country generating output worth 33.1 billion euros compared with 22.5 billion euros in the UK and 20.8 billion euros in Germany. The situation remains fragile, according to the LEEM, because conditions have to be created continually to maintain the country's attractiveness as a focus for industrial investment.