New Market Research Report: Hungary Pharmaceuticals & Healthcare Report Q4 2013

From: Fast Market Research, Inc.
Published: Fri Sep 13 2013


BMI View: Hungary's deteriorating outlook for pharmaceutical companies has contributed to its continued placement on the Special 301 Priority Watch List in the Pharmaceutical Research and Manufacturers of America (PhRMA)'s 2013 Annual Report to the US Trade Representative (USTR). Since the implementation of the Hungarian Pharma-economic Law (XCVIII/2006) and the Szell Kalman Plan, pharmaceutical expenditure has been drastically cut in Hungary in an effort to balance the state's budget. Such draconian measures have reduced drug expenditure in Hungary to 2006 levels and this decline is expected to continue in 2013 and beyond, impacting all stakeholders in the pharmaceutical market.

Headline Expenditure Projections:

* Pharmaceuticals: HUF619.15bn (US$2.75bn) in 2012 to HUF578.35bn (US$2.63bn) in 2013;
* -6.6% in local currency terms and -4.6% in US dollar terms. Local currency forecast somewhat lower in relation to previous quarter's projection, on account of analyst intervention.
* Healthcare: HUF2,170bn (US$9.65bn) in 2012 to HUF2,156bn (US$9.79bn) in 2013; -0.6% in local currency terms and +1.5% in US dollar terms. Local currency forecast slightly lower in relation to previous quarter's projection, on account of less favourable pharmaceutical market outlook.

Full Report Details at
- http://www.fastmr.com/prod/671006_hungary_pharmaceuticals_healthcare_report_q4_2013.aspx?afid=303

Risk/Reward Rating: The Q413 version of our proprietary Pharmaceutical Risk/Reward Rating (RRR) assessment tool again ranks Hungary eighth out of the the 20 regional markets profiled in the Central and Eastern Europe (CEE) region. While some aspects of its business environment remain positive, Hungarian state's focus on pricing and budgetary discipline will continue to detrimentally impact the development of its pharmaceutical and healthcare markets. While still being amongst the largest markets in the CEE region, a combination of price erosion, large tax liabilities and restrictive market access limits the opportunities for drugmakers.

Key Trends & Developments

* In July 2013, Hungarian independent representative Laszlo Szilagyi urged the incumbent Fidesz government to provide an additional HUF50bn (US$223mn) for hospitals across Hungary, also calling on the government to resolve the financial problems faced by domestic hospitals at least for a short-term period. The politician observed that the medical sector's deficit, for dealing with the scarcity of human resources in the sector, has increased compared with the deficit recorded in 2012. However, according to a written response by the Fidesz government, the poor condition of the country's hospitals has been caused by the previous governments, due to which the incumbent government inherited a medical sector debt of around HUF125bn (US$559mn).

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For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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