Economic woes will see Italy’s pharma industry decline to $18.6 billion by 2020

The pharmaceutical industry in Italy is set to decline from $21.3 billion in 2016 to $18.6 billion by 2020, at a negative compound annual growth rate of 3.3%, primarily due to the country’s struggling economy.

According to research and consulting firm GlobalData’s latest report, the strict pricing of drugs through negotiations and external and internal reference pricing is a barrier to the launch of innovative molecules, and sales of generics and over-the-counter drugs will increase over the forecast period.

Adam Dion, GlobalData’s senior industry analyst, explains: “The pharmaceutical industry in Italy will face a number of challenges over the next few years. An increase in the Italian government’s debt relative to GDP, and the country’s poor growth record, will decrease cash flow in the country, meaning the industry will stagnate."