Neurological disorders seen as route to profit in Europe

Favourable population demographics and improving diagnostic techniques, as well as the untapped potential represented by a high level of unmet clinical needs and a lower level of genericisation, are benefiting the European central nervous system (CNS) therapeutics market, which looks set to achieve revenues of around $31.3bn in 2012, according to a new report from Frost & Sullivan.

"The expansion of the CNS market is expected to be based on neurological disorders such as Alzheimer's disease and multiple sclerosis," said Sumanth Kambhammettu, an F&S research analyst. "Psychiatric disorders feature a high level of genericisation and intense competition, resulting in a shift in focus to neurological disorders."

However, to capitalise on these growth opportunities and push on from 2005's $22.9bn revenues, the focus will have to be placed on product life cycle management and on developing novel drug delivery methods, with parallel reimportation, reference pricing and increasing cost containment measures by the European Government providing obstacles to marketing penetrations.

"The National Institute of Clinical Excellence (NICE) guidelines for multiple sclerosis and oral neuroleptics in the UK and the decentralisation of reimbursement policies in Italy are certain decisions that are likely to have significant ramifications on the CNS markets," added Kambhammettu. "With most European governments making it harder for products to be reimbursed, market participants will have to devise strategies to price their products competitively, and yet make them affordable."

In more mature markets, such as depression and psychosis, research will need to focus on expanding product indications and sustaining the market share of blockbuster molecules. Marketing collaborations and consolidation by means of alliances, as well as mergers and acquisitions, are expected to be seen as companies look to offset the risks of drug development.