Despite low pharmaceutical expenditure and the absence of a home-grown major multinational drugs company (although DSM is a key local drugs and chemicals firm), the Dutch healthcare outcomes are excellent. Indeed, the Netherlands came top of the Euro 2008 and 2009 Health Consumer Index, which is compiled by Swedish company Health Consumer Powerhouse.

Source: Agentschap NL

Agentschap NL calculates the Netherlands’ pharmaceutical expenditure to have been EUR5.8bn in 2008. Agentschap NL expects drug expenditure to reach a value of EUR6.0bn in 2009. By 2014, we expect the total amount spent on prescription and over-the-counter medicines to have reached a value of EUR6.9bn, equating to a 2009-2014 Compound Annual Growth Rate (CAGR) of 2.7%.

Source: Agentschap NL

In 2008, health expenditure reached a value of EUR56.8bn, demonstrating 6.3% growth from the previous year. In 2009, health expenditure is forecast to decline to EUR56.1bn  as a result of the economic downturn, before rising again to EUR58.4bn by 2010. Agentschap NL calculates that by 2014 health expenditure will reach a value of EUR72.7bn, equating to a 2009-2014 CAGR of 5.3%. Health expenditure as a percentage of GDP is expected to reach a value of 9.7% in 2009 and 10.1% by 2014. Public sector health expenditure reached a value of EUR45.7bn in 2008, accounting for 80.5% of total health expenditure. Agentschap NL calculates that in 2009, government spending on health will reach a value of EUR45.1bn, accounting for 80.3% of total health expenditure. By 2014, it is expected that the government’s contribution to healthcare will decline to 73.3% of the total health expenditure, reaching EUR53.3bn, equating to a 2009-2014 CAGR of 3.4%.

Drugmakers that export from the country include Merck & Co, GSK, Akzo Nobel, Qiagen and DSM, and Agentschap NL forecasts that exports from the Netherlands will increase from EUR10.5bn in 2008, to EUR11.0bn in 2009, to EUR13.47bn by 2014. Meanwhile, imports are expected to increase from EUR10.5bn in 2008, to EUR11.0bn in 2009, to EUR14.5bn by 2014. While exports have been strong in the past, imports are forecast to gain prominence, as the Netherlands continues to act as a notable regional distribution base. The Netherlands imports a significant amount of its medical devices and supplies. Around 80% of branded drugs are imported into the country, a significant proportion of which are then re-exported, mainly to countries within the EU. The Netherlands also imports a significant amount of its medical devices and supplies. With the Dutch government looking to cut medical costs, there is particular demand for cost-effective medical devices.

The Dutch Life sciences sector in The Netherlands is one that answers to international renown. As we approach biotechnology as Life sciences we find that the name is more apt. In the Netherlands life sciences are applied in a variety of fields among others the areas are, the pharmaceuticals industry, the chemicals and food industry and the environmental sector. When treating the subject of life sciences an important distinction has to be made. There are namely two types of companies that are specialized in the research and application of life sciences (core business) and companies that only use life sciences on an incidental basis for purposes of research.

There are 5 different fields in which life sciences are applied: white biotechnology with applications in industrial production; green biotechnology with applications in agriculture and food production; red biotechnology with applications in healthcare; blue biotechnology with applications in the aquatic sector.

The Dutch government is quite pro active in stimulating the life sciences sector as can be discerned by its recent commitment to spend an amount of 81 million Euros on the sector as a three pillar stimulation strategy. The statement of intent this has shown, has resulted in a counter investment by other important players in the field (industrial and academic partners) resulting in a doubling of the total funds to be allocated to research. 162 million Euros is thus to be spent on the following research (a.o.):

• Euro 10 million for diagnostics,
• Euro 24 million for drugs,
• Euro 42 million for devices based on regenerative medicine

For any supplementary information on this or any other sector please contact us through the contact form, email or telephone.