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The Outlook for Pharmaceuticals in Central & Eastern Europe
Date:12/13/2012

slation have been deemed unconstitutional.

POLANDIn May 2011, President Komorowski signed a controversial Drug Reimbursement Act into law, which is designed to curb the growth of drug reimbursement expenditure. The measures in the Act, which are to take effect from January 2012, include limiting drug reimbursement expenditure to 17% of total public healthcare spending, forcing pharmaceutical companies to cover half of any drug reimbursement overspending, applying fixed retail prices to reimbursed medicines, introducing fixed margins for wholesalers and requiring certain physicians and wholesalers to sign contracts with the NFZ, agreeing to prescribe and sell medicines at the official, fixed price. There are concerns that the elderly and those on low incomes will not be able to afford the new official prices and the Office of Competition and Consumer Protection has stated that fixed prices and margins on reimbursed drugs contravene free market principles.

ROMANIA

The Romanian pharmaceutical market will be the fourth largest in Central & Eastern Europe by 2016. It is expected to expand at a moderate CAGR between 2011 and 2016, although growth may be affected by slow economic recovery. Imports constitute a large proportion of the market. The expansion of the Romanian pharmaceutical market is largely driven by import growth; the value of imports increased by a double-digit CAGR between 2006 and 2010. Whilst the large population creates demand for pharmaceuticals, the low GDP per capita means that patients are unlikely to be able to afford the more expensive drugs and will settle for the cheaper alternatives.

RUSSIAThe presence of foreign manufacturers is increasing in Russia. A number of agreements have been made in 2011 between domestic and foreign companies that will benefit the Russian pharmaceutical market. These include a joint venture between India's Aurobindo Pharma and Russia's OJSC Diod; a licensing agreement between Norgine an
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