Market Size of Finland Pharmaceutical Industry
|2019 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2019 - 2022
*Disclaimer: Major Players sorted in no particular order
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Finland Pharmaceutical Market Analysis
The Finland pharmaceutical market is anticipated to register a CAGR of 3.9% during the forecast period.
According to the Finnish Medicines Agency, data updated in 2022, the COVID-19 pandemic in Finland did not significantly impacted medication availability. To avoid complications even if the situation persists, Finnish healthcare and pharmaceutical operators collaborated closely to prevent shortages. Companies evaluated the effects of the COVID-19 outbreak on production and the state of supply chains and stocks in collaboration with pharmaceutical producers and importers. The authorities were closely observing the situation with other companies in the industry. For instance, the European medical authorities in Finland exchanged updates on the issues faced within the country regularly. To support the continued availability of medicines in the European Union (EU), the European Medicines Agency (EMA) supports developing and approving safe and effective treatments and vaccines. It also supports the provision of accurate information to patients and healthcare professionals. In March 2021, Finnish academic- Rokote Laboratories Finland Ltd. worked on developing and marketing a nasal spray vaccine targeting COVID-19. The vaccine performed well in in-vivo studies with animal models. Hence, the studied market witnessed significant growth and is expected to grow over the forecast period.
Factors such as the rising incidence of chronic diseases and growing research and development (R&D) investments in the country are expected to boost market growth over the forecast period.
The increasing country's spending on pharmaceutical products indicates the high demand for drugs, which is expected to fuel the market growth. For instance, according to the International Trade Administration, US Department of Commerce, data updated in June 2023, Finland imported USD 2.52 billion in pharmaceutical products. It exported USD 1.24 billion in 2022 compared to USD 2.46 billion and USD 978 million in the previous year. Also, as per the source mentioned above, the Finnish population spent an estimated USD 4 billion on pharmaceutical products in 2020, representing a 1% increase from the preceding year. Additionally, as per the data published by Orion Corporation in its 2022 Financial Statement, the company reported net sales of EUR 321.9 million (USD 354.92 million) pharmaceutical products in Finland in 2022 as compared to EUR 33.4 million (USD 36.83 million) in 2021. Thus, the increasing revenue indicates the high demand for pharmaceutical products. It urges the company to develop innovative drugs for treating various diseases, hence expected to augment the market growth over the forecast period.
Furthermore, the increasing focus of the government and institutions to accelerate drug development initiatives in the country is also expected to fuel market growth. For instance, in March 2022, iCAN, in partnership with the University of Helsinki, HUS Helsinki University Hospital, and other company partners, launched the iCAN Flagship Project. It enables broad genomic and molecular profiling of cancers in Finland for improving treatments. Also, in February 2022, the Minister of Family Affairs and Social Services, Krista Kiuru, signed an agreement on establishing the National Drug Development Centre to promote competitive drug development. Such initiatives are anticipated to fuel the development of novel drugs for treating chronic disease patients, propelling the market growth.
Also, the growing number of grants and project launches by the companies increases drug research and development activities in the country, which is anticipated to propel the growth of the pharmaceutical market over the forecast period. For instance, in March 2023, Orion launched a project to build a unique data and AI-based pharmaceutical research ecosystem in Finland in cooperation with other companies, research institutes, and universities. Business Finland allocated over EUR 10 million (USD 11.03 million) to Orion, and nearly EUR 20 million (USD 22.05 million) is reserved for the research institutions and companies participating in the ecosystem to be created. The project aims to reduce the time required to discover and produce breakthrough medications by utilizing artificial intelligence and enhancing data processing and analysis. Such initiatives are expected to create new competencies by bringing together experts in disease biology, pharmaceutical research, and data science, bolstering market growth.
Therefore, the studied market is expected to grow over the forecast period due to growing demand for pharmaceutical products, increasing company spending in research activities, launches of drug development projects, and funding. However, the highly expensive patented drugs are likely to hinder the growth of the pharmaceutical market in Finland over the forecast period.