SOURCE: MarketResearch.com

MarketResearch.com

November 14, 2011 10:08 ET

Central & Eastern Europe Pharmaceuticals Market to Reach $104 Billion by 2016

ROCKVILLE, MD--(Marketwire - Nov 14, 2011) - MarketResearch.com has announced the addition of the new report "The Outlook for Pharmaceuticals in Central & Eastern Europe" to their collection of Pharmaceuticals market reports. For more information, visit http://www.marketresearch.com/Espicom-Healthcare-Intelligence-v1129/Outlook-Pharmaceuticals-Central-Eastern-Europe-6665772/

The pharmaceutical market of Central & Eastern Europe is estimated at US$63.6 billion at retail prices in 2011; it is expected to reach US$104.2 billion by 2016. The market is expected to expand by a moderate CAGR in US dollar terms between 2011 and 2016, as the region's economies recover from the global economic crisis.

Generic medicines represent around half of the total CEE pharmaceutical market in value terms and almost three quarters in volume terms. Generics have retained their strong position in the region due to the demand for affordable drugs and the fact that some governments favour generics when selecting products for reimbursement, as they are usually cheaper than imported products and help to keep costs down. Although rising incomes have led to increased sales of branded products, recent financial difficulties are likely to have forced patients towards purchasing cheaper generics.

Central and Eastern Europe is home to a large number of generic companies, including Krka, Gedeon Richter, Polpharma and Zentiva, which have traditionally focused on the production of generics. Pharmstandard, Russia's leading generic company, has a small number of original drugs in its portfolio, but many companies lack the funding that is required for extensive R&D. Branded generics are particularly common in Central and Eastern Europe, especially in Russia, due to the tradition of self-medication which has encouraged companies to produce pharmaceuticals with recognisable names and the erroneous belief that pure generics are unsafe.

Much of the pharmaceutical legislation within the region has been harmonised with that of the EU. However, the level of IP protection remains an international concern. Problems that are commonly raised include a lack of transparency in IP procedures and the lack of effective enforcement.

The countries of Central & Eastern Europe are projected to spend an estimated US$335.9 billion on healthcare in 2016, equal to 6.8% of GDP. At present, only 39.6% of spending in the region is private, but over 87.0% of this is composed of out-of-pocket payments. Several countries in the region are taking steps to reduce the growth of health expenditure, by passing on a greater proportion of costs to patients, and in some cases to pharmaceutical companies. For instance, in Poland, new legislation coming into force in January 2012 will limit drug reimbursement expenditure to 17% of total public healthcare spending, introduce fixed retail prices for reimbursed medicines and force pharmaceutical companies to cover 50% of any reimbursement overspend.

For more information, visit http://www.marketresearch.com/Espicom-Healthcare-Intelligence-v1129/Outlook-Pharmaceuticals-Central-Eastern-Europe-6665772/

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