The solution for Spanish pharma companies lies abroad

The pressure on the prices of medicines by Spanish government has seen the pharmaceutical market in Spain declined more than 7% in 2012, according to recent IMS Health’s data. Moreover, the Spanish public health system debt owed to pharmaceutical suppliers stands at some 3.0 billion euros ($3.89 billion) according to trade group Farmaindustria’s data, is forcing national companies to look abroad to maintain profitability, says Francisco Rosa, a journalist with Spanish newspaper El Global in an exclusive article for The Pharma Letter.

The situation does not only affect small laboratories with less innovative potential, but leading companies such as Almirall (ALM: MC) and Zeltia (ZEL: MC), which have suffered the impact on their bottom line. Perhaps Almirall represents the best example. The Barcelona-based company saw its sales fall by 11%, from 768 million euros in 2011 to 682 million euros in the year ended December 31, 2012, even though the company has implemented a strategy of internationalization and 60% of group sales come from outside Spain. According to recent statements by Almirall’s chief executive, Enrique Domínguez, "foreign turnover could represent 70% of the total in 2014".

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