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European Pharmaceutical Industry Outlook 2017
Positivity for Pharmaceutical Industry in France, Belgium and the Netherlands in 2017
In this article we aim to present a quick and easy to digest run-down of the main trends and developments in a highlighted sector of the process manufacturing industries in one of our covered regions. For more information on the areas we cover, click here.
We’ve recently written about the impact of UK and global political uncertainty on capex levels across both the UK pharmaceutical and other main processing industries. Generally, we are seeing largely positive outlooks across the board being slightly tempered by challenges to the UK, European and US markets.
When focusing in on European pharmaceutical & biotech, the evidence from our capex project database is that investment levels are buoyant and confidence remains relatively high, as evidenced by the high level of investment expected in 2017 (all tracked on our project database and available to subscribers).
Where elsewhere we are seeing some projects being placed on hold as funding is called into question due to uncertainty, in the pharmaceutical markets of France, Belgium and the Netherlands we are seeing the majority of projects reach sanction – this trend is expected to persist into the rest of 2017.
While some impact of political circumstances with European elections coming up and the impending Brexit process commencing is expected, these factors are not impacting the general drive toward strong levels of development & investment across the board. Investment plans from organisations such as GlaxoSmithKline support this and is arguably a powerful example of the ‘business-as-usual’ approach we are seeing from pharmaceutical & biotech manufacturers.
Mergers and acquisitions are still impacting on the sector. For example, January saw Boehringer close the deal to acquire Merial, Sanofi’s animal health business, in exchange for Boehringer’s consumer healthcare business.
Trends & Opportunities
There is a move toward large manufacturers offloading production to contract manufacturers. These manufacturers are often undergoing capex activity to meet this growing demand, e.g. Cenexi in France & Belgium.
Animal Health continues to be a strong performer in 2017, with MSD in Belgium and the Netherlands, Boehringer in the Netherlands and Ceva Santé Animale in France all planning or undergoing high levels of investment.
Eye health is high on the agenda, with ophthalmic solutions a growth area – many producers are further investing into these product ranges e.g. Alcon-Couvreur in Belgium & Excelvision in France.
Blood products remain buoyant, with Sanquin in the Netherlands and LFB in France all planning or implementing project schemes.
There is still significant potential for suppliers in the areas of track & trace, serialisation and traceability in pharmaceutical packaging. For Europe, the deadline of 2018 for new stricter legislation coming into force is represents a major challenge for end users. As such, with many organisations still to meet required standards it would seem to be an area of significant opportunity for suppliers of innovative packaging solutions throughout 2017.
Our Coverage
The Netherlands
On our MyProtel project search engine we are currently tracking:
- 128 active pharma/biotech & laboratory projects;
- with a combined potential investment value of €1.23bn;
- an average project value of over €9.6m.
Major investors in 2017 include:
- MSD – €290m;
- Nutricia – €250m;
- Abbott Healthcare – €120m;
- Sanquin Blood Supply – €90m;
Belgium
On our MyProtel project search engine we are currently tracking:
- 134 active pharma/biotech & laboratory projects;
- with a combined potential investment value of €1.6bn;
- an average project value of over €12m.
Major investors in 2017 include:
- GlaxoSmithKline – €330m;
- Genzyme – €255m;
- Janssen – €220m;
France
On our MyProtel project search engine we are currently tracking:
- 213 active pharma/biotech & laboratory projects;
- with a combined potential investment value of €2.75bn;
- an average project value of over €13m.
Major investors in 2017 include:
- Sanofi-Pasteur – €440m;
- LFB Group – €400m;
- AstraZeneca – €150m;
Summary
On the whole confidence remains strong among major players. Investment levels are very buoyant among both large organisations and smaller producers across a diverse range of project schemes. The picture is broadly similar in France, Belgium and the Netherlands as we move into 2017 and early 2018.
Activity is especially lively in larger extant sites – where optimisation, upgrades and expansion are the theme. European and wider global political uncertainty seems to have had little impact on investment so far, and is deemed unlikely to have much impact in the next 12 months.
Overall, there is a great deal of potential for suppliers of capital equipment and related services across the pharmaceutical industry in France, Belgium and the Netherlands. Suppliers seeking refuge from slightly turbulent domestic conditions in the UK or the USA should find plenty of relevant projects both in early concept stages and entering implementation.
For more information on any of the organisations, projects or trends covered, including key information required to target specific projects, please contact us.