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Canada The Pharmaceutical Market

The relatively high consumption of patented drugs in Canada in comparison with other developed countries remains a positive sign for multinational pharmaceutical companies to maintain their current sales level s by 201 7 . Although innovative drugmakers have also experienced government cost containment policies and the patent cliff in Canada, the negative impact of these phenomena is less extreme than that in many other developed countries. The average cost of generic drugs per prescription experienced its first decline in Canada during 2011, indicating that a more competitive environment for generic drugmakers has been formed, which will ultimately benefit consumers .

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HeadlineExpenditureProjections

Pharmaceuticals: CAD25.81bn (US$26.06bn) in 2011 to CAD25.64bn (US$25.64bn) in 2012; -0.5% growth in local currency terms and -1.6% growth in US dollar terms. ForecastdownwardfromQ412on account oflower than expected new industry data.

MedicalDevices: CAD6.83bn (US$6.91bn) in 2011 to CAD7.12bn (US$7.12bn) in 2012; +4.2% growth in local currency terms and +3.1% growth in US dollar terms. Forecastslightly up fromQ412due to new industry data.

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Risk/RewardRating

The attractiveness of the Americas to multinational pharmaceuticals has declined moderately in BMI's RRRs for Q113. The average score for the region increased from 49.2 in Q412 to 49.4 in Q113. The Americas region continues to rank second-lowest globally with a score of 49.4 out of 100, behind Western Europe (66), Asia Pacific (53) and Central and Eastern Europe (51), but ahead of the Middle East and Africa (44).

Competitive Landscape

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.

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