|
|
 |
|
Viewing report
|
|
|
|
Hungary Pharmaceuticals and Healthcare Report Q1 2011
Business Monitor International, Nov 2010, Pages: 89
The Hungary Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Hungary's pharmaceuticals and healthcare industry.
Hungary’s pharmaceutical market is calculated to have grown by 6.75% in local currency during 2009, reaching a value of HUF655.3bn (US$3.25bn). Foreign currency fluctuations, however, resulted in the market shrinking by as much as 8.90% in US dollars, thus making it unattractive to foreign companies. For 2010, we expect the upward local currency trend to continue, but at a lower rate – of 4% in local currency terms, to HUF681.02bn (US$3.31bn) – as the new government is forced to rein in healthcare spending. Additionally, in 2010, the pharmaceutical expenditure budget is set to rise by just 0.68%, with a total of HUF345bn (US$1,868mn) apportioned to it.
However, a significant proportion of private spending on health still appears to be channelled through gratuities to doctors, thus falling outside the formal calculations. In 2009, Hungarian doctors received a combined HUF32bn (US$145.61mn) in gratuity payments in 2009, reported Világgazdaság, quoting a survey by healthcare research institute GKI-EKI commissioned by insurance company AXA. The majority of Hungarians are still of the view they will be better attended if they pay a tip to doctors. BMI’s five-year projections for Hungary’s pharmaceutical market show slightly increased causes for optimism for drugmakers. A sluggish return to economic growth in 2010 and beyond should gradually boost private sector spending. Budget deficits remain a key concern for government funding for innovative medicines, and it is likely that national health insurance budgets will remain pressured regardless. From 2009-2014, BMI forecasts a compound annual growth rate (CAGR) of 3.27% in local currency terms and 3.83% in US dollar terms. Total drug expenditure is projected to reach HUF1.03bn (US$5.23bn) in 2019, posting CAGRs of 4.59% and 4.86% in forint and US dollar terms, respectively.
Nevertheless, the relatively attractive regulatory environment (as illustrated by the increasing dynamism of the Hungarian clinical trials industry, for example) and epidemiological profile of the country, coupled with high per-capita spending in relation to other Emerging Europe markets, means Hungary ranks fourth of the 20 countries surveyed in our Pharmaceutical & Healthcare Business Environment Ratings (BERs) for the region. Still, risks going forward will also include the tightening pharmacy ownership regulations, due to come in at the start of 2011, when the six-month ban on the opening of new pharmacies expires. The rules come with a condition that the pharmacy owner is a pharmacist and should own more than 50% of the business, which will hamper the development of chains. We also expect official unemployment levels to remain in double digits through 2010, which will have a bearing on the patients’ ability to procure medicines out-of-pocket. Additionally, over the medium term, economic growth will continue to be hampered by a fragile household sector, a banking system constrained by new taxes and capped government spending.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
