New Report Available: Romania Pharmaceuticals & Healthcare Report Q4 2013

From: Fast Market Research, Inc.
Published: Tue Oct 01 2013


We forecast continued growth in Romania's pharmaceutical market due to greater private contributions to the cost of healthcare and a return to slight economic growth in 2013. The partial removal of elements of the claw-back tax will undoubtedly provide the industry with a slight boost this year, as will pressure from creditors to repay debts and companies on time. However, the delaying of changes to the reimbursement list until January 2014 will moderate the growth of patented and prescription medicines in 2013. These issues continue to weigh down BMI's assessment of Romania's Pharmaceutical and Healthcare Risk/Reward ratings.

Full Report Details at
- http://www.fastmr.com/prod/684743_romania_pharmaceuticals_healthcare_report_q4_2013.aspx?afid=303

Headline Expenditure Projections

* Pharmaceuticals: RON13.55bn (US$3.91bn) in 2012 to RON13.96bn (US$4.29bn) in 2013; +3.0% in local currency terms and +9.7% in US dollar terms. US dollar forecast down from Q313.
* Healthcare: RON33.99bn (US$9.80bn) in 2012 to RON36.35bn (US$11.17bn) in 2013; +6.9% in local currency terms and +13.9% in US dollar terms. Forecast unchanged from Q313.

Risk/Reward Rating

Romania has a RRR score of 56 out of 100, making it the seventh-most attractive pharmaceutical market in the Central and Eastern Europe region. Although over the long terms Romania has a promising growth story, punitive taxes, pricing controls and a lack of funding by the state for reimbursing patients will moderate the market's attractiveness to drugmakers.

Key Trends And Developments

* Having secured IMF funding, as part of its credit deal, Romania will have to pay off its debts to drugmakers and suppliers to its healthcare system. The IMF is also pushing for Romania to increase its tax base, reform its healthcare system and increase its healthcare expenditure to meet its demographic changes.
* In February 2013 the Romanian Constitutional Court ruled that part of the claw-back tax was unconstitutional. The calculation method for determining the amount the industry had to pay the Romanian government used the post-VAT price of medicines, thereby inflating the amount due back to the government. The court ruled that drugmakers had been unfairly double-taxed by the provision.
* An estimated EUR85mn (US$110mn) was expected to be collected by the Romanian health ministry through the claw-back tax in 2012, supplementing the EUR33mn (US$43mn) allocated to the ministry by the government. The tax revenue, planned to be transferred to the single health insurance fund, was to be spent on hospitals, with priority given to regional network and emergency hospitals. Newly launched drugs and medical supplies supervision programmes in Romania were also reportedly to be allocated EUR880,000 (US$1.14mn).

BMI Economic View

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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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