Finland Pharmaceutical Market Size

Finland Pharmaceutical Market Analysis

The Finland Pharmaceutical Market is projected 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 affect the availability of medications. To avoid complications even if the situation persists, Finnish healthcare and pharmaceutical operators were continually collaborating closely to prevent shortages. Companies evaluated the effects of the COVID-19 outbreak on production as well as the state of supply chains and stocks in collaboration with pharmaceutical producers and importers. Together with other companies in the industry, the authorities were closely observing the situation. For instance, the European medical authorities in Finland exchange updates on the issues faced within the country on a regular basis. In order to support the continued availability of medicines in the European Union (EU), the European Medicines Agency (EMA) supports the development and approval of 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. As a result of such developments, the market is expected to grow over the coming years.

According to the International Trade Administration, U.S. Department of Commerce, data updated in July 2022, Finland accounts for about 1.3% of European pharmaceutical sales and less than half a percent of global sales. In 2020, Finland imported USD 2.46 billion in pharmaceutical products and exported USD 978 million. In 2020, the Finnish population spent an estimated USD 4 billion on pharmaceutical products, which represented a 1% increase from the preceding year. The Finnish pharmaceutical industry consists of regulatory processes, routine checks, and safety testing for prescription drugs. Control and clarification are vital components of this policy's supervision. In Finland, the licenses for the production of pharmaceutical products and the wholesale license for pharmaceutical products are given by the Finnish Medicine Agency, Fimea. Under the Medicinal Products Act, only manufacturers of pharmaceutical products with appropriate manufacturing plants and equipment and a license granted by Fimea can manufacture pharmaceutical products industrially. The wholesale trade in pharmaceutical products is therefore subject to a license given by Fimea. According to Orion Corporation, data updated in October 2021, Finland’s recent growth has been impressive: investments in the pharmaceutical industry in Finland totaled EUR 330 million in 2020, which is 39% more than in the previous year.

As per an article titled "Well-functioning ecosystem for the pharmaceutical industry" published in 2021 by Pharma Industry Finland (PIF), exciting prospects and competitive advantages, particularly because of its highly qualified workforce and excellent university research, are expected to propel the market in the country. For instance, a long history of ground-breaking genetic research in Finland has established a strong foundation based on a trustworthy healthcare system and records, consistent medical procedures, high-quality public healthcare for the population, and a predictable business environment for investing. It is only through this strong foundation that growth can be achieved in the pharmaceutical sector.

As per the data published by the Pharmaceutical Industry Association, Finland in September 2022, the government is anticipated to boost research, development, and innovation (RDI) activities spending to 4% of GDP and keep working to strengthen RDI funding over the long term. By 2023, it is projected that central government funding for R&D will total EUR 2.4 billion. Pharmaceutical manufacturing spending in Finland increased by 80% in 2022 over the previous year, and companies in the field anticipate further growth of up to EUR 120 million in the near future. Moreover, in Finland, the pharmaceutical sector employs around 5,400 top professionals and specialists. Likewise, the entire amount invested in the pharmaceutical industry in 2021 was EUR 357 million. In 2021, production investments surged by 80% to a total of EUR 121 million.

The healthcare system in Finland has improved significantly in recent years with the advent of new technology and a substantial commitment from the government to create awareness regarding serious diseases and promote various services for the general population of the country. The health sector in Finland comprises a strongly regulated three-level public health network and a much smaller portion of the private sector. Whereas the Ministry of Social Affairs and Welfare has a very broad number of decision-making agencies, authorities, and local councils that are responsible for providing healthcare to their residents.

Thus, these aforementioned factors altogether are contributing to the market’s growth. However, highly expensive patented drugs are expected to hinder the market’s growth over the forecast period.