Greece Pharmaceuticals & Healthcare Report Q4 2013 - New Market Study Published

From: Fast Market Research, Inc.
Published: Wed Nov 13 2013

Mounting pressure from Greece's creditors has prompted the health ministry to announce further measures to reduce pharmaceutical and healthcare expenditure, reaffirming our bleak outlook for the sector going into 2014. There have been some positive developments, such as the announcement that the state budget posted a preliminary primary surplus of EUR2.6bn (US$3.5bn) for H113. However, the state has repeatedly had to bail out the national health insurer, the EOPYY, by extending it funds in order to pay off hospitals, pharmacies and pharmaceutical companies. The principal concern among drugmakers and observers is how Greece will lower its spending next year in 2014 to under EUR2bn (US$2.66bn), when it cannot manage to curtail spending below EUR2.44bn.

Headline Expenditure Projections

* Pharmaceuticals: EUR5.99bn (US$7.61bn) in 2012 to EUR5.62bn (US$7.53bn) in 2013; -6.2% in local currency terms and -1.1% in US dollar terms. Forecast unchanged from previous quarter.
* Healthcare: EUR17.22bn (US$21.86bn) in 2012 to EUR14.85bn (US$19.90bn) in 2013; -13.7% in local currency terms and -9.0% in US dollar terms. Forecast unchanged from previous quarter.

Full Report Details at

Risk/Reward Rating: Greece's Risk/Reward Ratings score remains unchanged at 58 out of 100, making it again the fourth-most attractive pharmaceutical market in Central and Eastern Europe. Although Greece's financial outlook has stabilised and debts are being paid down, the spectre of further price cuts, clawback taxes and the National Organisation for Healthcare Provision (EOPYY)'s inability to pay drugmakers in a timely manner present significant risks to the industry in the medium term.

Key Trends And Developments

* In September 2013 health minister Adonis Georgiadis revealed plans to provide incentives to patients, doctors and pharmacists to increase the use of generic medicines. The move aims to raise the consumption of generic medicines in the country from 18% to 60% in accordance with the requirements of the troika of international lenders, the EU, European Central Bank and IMF.
* In July 2013 the troika ordered the health ministry to further reduce its pharmaceutical spending in 2013. The troika instructed Adonis Georgiadis to bring pharmaceutical expenditure back in line with its 2013 target of EUR2.37-2.44bn (US$3.09-3.19bn). Drugmakers and observers are concerned that it will be very difficult for the country to lower its spending in 2014 to less than EUR1.9bn (US$2.48bn), when it has not even managed to curtail current spending below EUR2.44bn (US$3.19bn).

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