Navigation path

Healthcare Industries

Pharmaceuticals in Europe: Facts and Figures

Photothèque - Instruments de mesure

The European-based pharmaceutical industry makes a major contribution to the EU, not just in economic terms but also in terms of high-quality employment, investment in the science base and in terms of public health.

 

Introduction

The manufacture of pharmaceuticals includes two sub-sectors: the basic pharmaceutical products (NACE Class 24.41) and the pharmaceutical preparations (NACE Class 24.42). This sector has a double crucial role: the manufacture of safe and effective medicines for the protection of the public health and the creation of a business environment that promotes the research and innovation and therefore increases the competitiveness of the European economy.

Structural profile

In 2007, the manufacture of pharmaceutical preparations and basic pharmaceutical products was the principal activity of about 4 500 enterprises throughout the EU-27. The number of persons employed in this industry was estimated at 611 000. This represents about 30% of the total number of persons employed in the manufacture of the fuel processing and chemicals industry. The value added of the pharmaceutical sector for the same year was EUR 73.7 billion in the EU-27. This amount also represents around 30% of the value added generated in the whole industry of fuel processing and chemicals. The subsector of pharmaceutical preparations contributes around 90% (as shown in Table 1) of the value added of both basic pharmaceutical products and pharmaceutical preperations.

 

Table 1: Manufacture of basic pharmaceutical products and pharmaceutical preperations, EU-27, 2007

Enterprises
(thousand)

Turnover
(EUR million)

Value added
(EUR million)

Persons employed(thousand)

Basic pharmaceutical products

0.9

15 697

6 828

56.5

Pharmaceutical preperations

3.6

190 182

66 853

554.6

Source: Eurostat (SBS)

 


The member states with the largest pharmaceuticals sectors were Germany and France with 21 and 18% of the EU27 value added respectively. However, it is to be noted that the pharmaceuticals sector plays a more important role in relative terms (share of the sector's output to the output of the non-financial business activity as a whole) in Hungary, Ireland, Sweden, Belgium and Slovenia (Table 2). Moreover, between 2004 and 2007 the production value of basic pharmaceuticals and pharmaceutical preperations increased 12.87% for the EU27 (from EUR 170.6 to EUR 192.5 billion). In the last ten years, the output growth of the pharmaceutical sector was particularly important for Ireland (18% on average per year) and Greece (14.1% per year) whereas in Portugal and Finland a moderate decline can be noticed for the same period.

 

Table 2: Manufacture of basic pharmaceutical products and pharmaceutical preperations, ranking of top five Member States in terms of value added and persons employed and specialisation, 2007

Highest value added

Largest number of persons employed (1)

Most specialised:
share in non-financialbusiness economy (%)
(1)

Country

Eur million

% of EU 27

Country

Thousands

% of EU 27

Country

Value added

1

Germany

15 589

21.16

Germany

132.9

23.56

Slovenia

4.1

2

France

13 214

17.94

France

103.2

18.29

Belgium

3.0

3

United Kingdom

11 908

16.16

Italy

70.0

12.41

Sweden

2.9

4

Italy

6 828

9.27

United Kingdom

66.5

11.79

Ireland

2.7

5

Belgium

4 574

6.21

Spain

39.9

7.07

Hungary

2.5

(1) Data for2006 - Source: Eurostat (SBS)

 

Table 3: Pharmaceuticals (CPA Group 24.4), Production of selected products, EU-27, 2007

 

Prodcomcode

Productionvalue

(EURmillion)

Medicaments containing corticosteroid hormones, their derivatives & structural analogues, put up in measured doses or for retail sale

24.42.12.65

8 394

Vaccines for human medicine

24.42.21.40

4 799

Medicaments containing vitamins; provitamins; derivatives & intermixtures thereof; for therapeutic or prophylactic uses; put up in measured doses or for retail sale

24.42.13.60

2 938

Opacifying preparations for X-ray examinations; diagnostic reagents designed to be administered to the patient

24.42.23.40

2 648

Antisera & other blood fractions

24.42.21.20

2 623

Medicaments of penicillins, streptomycins or deriv. thereof, in doses or p.r.s.

24.42.11.60

2 400

Medicaments containing insulin but not antibiotics; for therapeutic or prophylactic uses; put up in measured doses or for retail sale

24.42.12.60

2 400

Medicaments of alkaloids or derivatives thereof, p.r.s.

24.42.13.40

2 163

(1) Excluding products of a generic nature (other), sales of services such as repair, maintenance and installation; estimates; threshold of production value set at EUR 2 billion; the rounding base indicates the magnitude of the rounding employed to protect confi dential cells (in the case of PRODCOM code 24.42.11.60, the value lies within the range +/- EUR 800 million of the reported value). Source: Eurostat (PRODCOM)

 

The expenditure in research and development within the pharmaceutical sector was estimated to EUR 8.7 billion for 2006 whereas 90% of this amount was spent in Germany, Sweden, Denmark, France, the United Kingdom and Spain (Table 4).


Table 4: Manufacture of pharmaceuticals (NACE Group 24.4). Intra-mural research and development expenditure: Selected Member States, 2006

 

R&D expenditure
(EUR million)

Share of manufacturing R&Dexpenditure (%)

DK

1 050.7

44.3

DE

3 343.7

7.3

ES

605.8

18.0

FR

960.9

6.5

SE

1 475.9

22.8

UK

648.3

8.6

Source: Eurostat (SBS)

 

Personnel costs accounted for about EUR 56.1 thousand per pharmaceutical employee (20.4 % of the pharmaceutical sector’s operating expenditure in 2006). On the other hand, each person employed in pharmaceuticals manufacturing, generated an average of EUR 115.6 thousand of value added in the EU-27 for the same year. Therefore, the value added generated per person employed was twice as high as its relevant cost.

 

 

Share: FacebookGoogle+LinkedInsend this page to a friend

Set page to normal font sizeIncrease font size by 200 percentprint this page