For the first time in history, the pharmaceutical industry is expected to post a positive earnings forecast for the year.
Revenue is expected at €8.9bn, or about 7.6 per cent of Gross Domestic Product (GDP), with profits of €1.8bn.
Reuters/davidlewis Reuters 1/6 EU drug prices rose to record levels The EU’s pharmaceutical companies have increased their prices by more than a third since 2012, the highest increase in four years, according to a new report.
The drugs come from all over the world, with the highest concentration in Europe – Germany, the United States, Japan and Australia.
The annual rise in the average price of a drug is around 6 per cent, according the Organisation for Economic Cooperation and Development (OECD).
This year’s average price is €6,400 for a generics drug, or around $5,100, according a research report from the International Federation of Pharmaceutical Industry Members (IFPI).
That means the average EU-manufactured drug is now around £1,700 more expensive than it was a year ago.
That means, on average, every EU-made medicine is now more than 10 per cent more expensive to produce.
The average EU pharmaceutical company has increased their profit margins by 6.3 per cent since 2012.
That compares with an average 2 per cent increase for non-EU companies.
That is because of the strong recovery in the EU economy, which is expected a big boost to their profit margin.
The IFPI’s report said the industry had seen “unprecedented” demand from Europe and the US, which combined account for almost half of the pharmaceutical market.
However, it warned that the rise in drug prices was also partly driven by the rise of the global Ebola pandemic, which has led to a sharp rise in demand for generic drugs.
“The world has become increasingly concerned about the impact of the pandemic on the supply chain, as well as the impact on healthcare,” the IFPIs report said.
“There is growing concern about the price escalation.”
The price of generic medicines in Europe has doubled from €1,800 to over €3,500, according for the IFAI, from 2015 to 2016, when they were around €600.
This year, the annual rise is expected be even higher, to €12,000.
“This year we see a further increase in the price of generics drugs.
This is a consequence of the emergence of the Ebola crisis, with global demand for generics increasing from the start of this year,” said IFPIC president Pierre Hahnemann.”
Given the increased demand, prices for generically manufactured products have been increasing significantly.
This means that the cost of medicines for generic manufacturers has also increased significantly.”
European pharmaceutical companies are not the only ones struggling to make ends meet.
The US pharmaceutical industry, which was able to recover more quickly from the Ebola pandemias, was forced to drastically reduce their production capacity and has now had to lay off more than two million employees.
The Pharmaceutical Research and Manufacturers of America (PhRMA) said that since November, the average cost of its generic drugs has increased by around 9 per cent a year.
PhRM, the largest drug maker in the world and one of the biggest players in the European market, said its average cost had increased by over 25 per cent in the last 12 months.
Phraseant Pharmaceuticals, which supplies generic drugs to over 30 million customers, said that the average drug price in its US market has increased from around $6,000 to $9,000 over the last six months.
“In the past year, Pfizer has experienced significant increases in generic prices due to the Ebola virus pandemic.
Pfizer is currently reviewing all the risks associated with its global supply chain and the impact these new drug prices will have on our patients,” said a statement from Pfizer.
Phrasesant is the world’s largest producer of generic drugs, with sales of more than $1.4 trillion (€1.2 trillion) in 2016.