France's pharmaceuticals market to grow only slowly

The French pharmaceutical market will increase in value in 2009 (in local currency terms), having declined the previous year, according to Drug Expenditure Forecast Model, a report from Research and Markets. During 2008, over the- counter (OTC) and prescription medicine sales were 30.00 billion euros ($40.61 billion), down from 31.00 billion euros in 2007. In 2009, it is expected that drug sales will increase by 0.83% to reach 30.25 billion euros. However, in US dollar terms, as a result of the weakening of the euro, drug sales will experience a 3.43% decline from $44.12 billion in 2008 to reach $42.61 billion in 2009. This will affect the rest of the forecasts in the report.

By 2014, the report calculates that France's pharmaceutical market will be worth 32.12 billion, equating to a 1.21% compound annual growth rate (CAGR) in local currency terms and -0.93% growth in US dollar terms. The report's extended 10-year forecast model projects that drug expenditure will reach 37.11 billion euros by 2019, representing a 2009-2019 CAGR of 2.06% in local currency terms and 0.85% in US dollar terms. As a proportion of gross domestic product (GDP), drug expenditure is expected to decline marginally over the 10 years, from 1.58% in 2009 to 1.36% by 2019.

In September 2009, in a move to further reduce the country's health care budget deficit, it was revealed that the French government may cut reimbursement rates for a number of OTC drugs from 35% to 15%, as well as charging patients more for hospital stays.