Report: Denmark's pharma market expected to drop to $3 billion by 2020

Denmark’s pharmaceutical market will decline in value from $3.5 billion in 2013 to $3 billion by 2020, with price-cap agreements and high tax rates on pharmaceutical products two of the largest barriers to growth, according to a new report

Research and consulting firm GlobalData’s latest report states that price-cap agreements between the Danish Ministry of Health and the Danish Association of Pharmaceutical Industry have existed since 2008 and continue to limit pharmaceutical market growth as the government aims to keep drug prices down.

This is further exacerbated by the 25% value added tax on pharmaceutical products, which is high compared to other European Union countries, restricted sales of over-the-counter medicines and a costly labor force.