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Canadian pharma market to reach $46 billion by 2020

Universal healthcare and an aging population will see Canada's pharmaceutical market more than double in value before the end of the decade, says the latest research by healthcare industry analysts GlobalData.

The business intelligence firm's new report* states that from a 2011 figure of $19.7 billion, the North American country's pharmaceutical market will climb to a value of $45.9 billion by 2020, representing a positive compound annual growth rate (CAGR) of 9.9%.

Globaldata cites Canada's growing elderly population as a primary factor for the industry's impressive growth forecast. Although only 14% of the population was over 65 in 2010, they accounted for nearly 44% of the healthcare spending by provincial and territorial governments. This elderly segment of the population will increase in size in the foreseeable future, representing almost 17% of all Canadian residents by 2020.

Canada has a universal healthcare system that covers all citizens and, as a result, the majority of the country's healthcare spending comes from the government. On average, public healthcare expenditure accounts for approximately 70% of Canada's total, while private health insurance companies contribute around 12%.

According to the Canadian Institute of Health information (CIHI), as of 2011, total spending on healthcare in Canada is expected to grow by more than $7 billion to reach $210 billion by the end of this year. Healthcare spending continues to rise faster than both inflation and population growth in Canada, and is forecast to reach approximately 14% of Canada's GDP by the end of 2012.
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