UK pharmaceutical market set to see moderate growth over coming years despite economic recession, says Espicom

The UK pharmaceutical market is set to experience moderate growth over the coming years, tempered slightly by the effects of the economic recession, according to a new report from Espicom Business Intelligence. Public spending cuts are inevitable, as public debt continues to increase, and health expenditure is set to suffer as a result.

In 2010, the NHS budget is £102.3 billion ($159.95 billion), but this could fall by 2.5% to 3.0% per annum from 2011/12. According to the Coalition government’s Budget 2010, the National Health Service and the Department of Health will be required to make savings of £4.35 billion by 2012/13. This follows a period of huge growth in health spending under the previous Labour government, which saw the NHS budget almost triple.

In July 2010, the Coalition government published a set of proposals to reform the NHS. These include devolving commissioning services to GPs and phasing out Primary Care Trusts and Strategic Health Authorities by 2013. Most notably for the pharmaceutical industry, there are plans to introduce value-based pricing in place of the Pharmaceutical Price Regulation Scheme (PPRS) when it expires in 2013, in order to promote innovation and ensure better access for patients to effective drugs (The Pharma Letter July 13).