Overseas pharma down to EU regulations?
Companies are shifting bases to the US because of increasing regulations in the European pharmaceutical industry...
Companies are shifting bases to the US because of increasing regulations in the European pharmaceutical industry according to a recent report by Frost and Sullivan. The World Laboratory Analytical Instrumentation Markets report claims that the market value will grow by approximately $3 billion by 2011 from the total value in 2004.
The market is being driven by protein research creating more sales of NMR spectrophotometers. However, growth in sales of such instrumentation depends on government expenditure, and the demand of customers for more product features at a lower price both challenge the manufacturers.
Other effects are reportedly arising from the European regulations on healthcare spending such as increased resistance from the pharma companies to consume more analytical equipment. The cost of prescription drugs is higher in the US and the market contributes more revenue than Europe, giving European companies a greater incentive to move.
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