|
|
 |
|
Viewing report
|
|
|
|
Slovakia Pharmaceuticals and Healthcare Report Q1 2012
Business Monitor International, Jan 2012, Pages: 86
BMI View: The potential of the Slovakian pharmaceutical market in the short term has been subdued by recent legislative changes. The government's most significant and damaging measure is the introduction of a stricter reference pricing model, with drug prices to be set to the average of the two lowest prices in the European Union (EU), replacing the current system in which medicines cannot exceed the average price of the six lowest prices for drugs in other EU markets. Additionally, the legislation will allow for pharmacoeconomic (PE) analysis of publicly funded drugs and the prescription of generic equivalents by doctor, which will shape the longer term development of the market.
Headline Expenditure Projections
- Pharmaceuticals: EUR1.68bn (US$2.22bn) in 2010 to EUR1.75bn (US$2.50bn) in 2011: +4.2% in local currency terms and +12.3% in US dollar terms. Forecast unchanged from Q411.
- Healthcare: EUR5.53bn (US$7.33bn) in 2010 to EUR5.78bn (US$8.27bn) in 2011; +4.6% in local currency terms and +12.8% in US dollar terms. Forecast slightly up from Q411.
- Medical devices: EUR395mn (US$524mn) in 2010 to EUR430mn (US$615) in 2011; +8.9% in local currency terms and +17.4% in US dollar terms. Forecast unchanged from Q411.
Business Environment Rating: Slovakia again ranks in ninth place in our latest matrix for Emerging Europe, which assesses the attractiveness of 20 key regional markets. Slovakia's composite score is virtually the same as in the previous quarter. At 55.1, out of the maximum 100 points, the score is reflective of higher risk variables than rewards. The latter have been negatively impacted by the legislation relating to pharmaceutical reimbursement funded by the state, primarily by the setting of drug prices at the average of two lowest prices in the European Union (EU), due to be enforced at the start of 2012.
Key Trends & Development
- In November 2011, health professionals in Slovakia expressed concern over a proposed list of medicines that provide supportive or complementary aid in treatment that will not be reimbursed by health insurance companies. The list, which is likely to be implemented in December 2011, is expected to secure savings of EUR13mn (US$17.54mn) annually for the public healthcare system. However, the list also contains some medicines that do not have direct substitutes. The Slovak Chamber of Pharmacists disagreed with the proposed list, arguing that the changes will significantly affect patients who are dependent on multiple medications.
- The Slovakian government is likely to clear the EUR350mn (US$504.08mn) public hospital debt before their transformation from budget-subsidised organisations to joint-stock companies, reported SITA in August 2011. The amount will be secured from the state's financial assets, according to a proposal by the finance ministry. The overdue debt of state-run hospitals stood at EUR240mn (US$345.74mn) at end-March 2011, similar to the non-overdue liabilities amount.
BMI Economic View: The persistent deterioration in the external environment is likely to weigh on Slovakia's economic growth in 2012, given the small, open nature of the economy. While we currently forecast real GDP of 2.9% in 2012, risks are firmly to the downside, in light of ongoing ructions in the eurozone. This will translate to lower demand-pull inflationary dynamics, putting our 2012 forecasts well within reach. We have revised our forecasts for Slovakia's consumer price inflation, as measured by the harmonised index of consumer prices (HICP) for the remainder of 2011, while maintaining our inflation forecasts for 2012. We now see growth in HICP coming in at 4.0%, from 3.4% previously, by end-2011, bringing the average to 3.9%, from 3.7% previously.
BMI Political View: With parliamentary elections looming in March 2012, and the domestic economy looking substantially weaker compared with its pre-2008 levels, with persistently high unemployment and deteriorating confidence, we believe the stage is set for a return of a centre-left government, led by Smer- SD. That said, we are not entirely discounting the possibility of a centre-right coalition, especially if popular opposition to future bailouts continues to rise. Regardless of the winner, the downward pressure on the pharmaceutical market is expected to continue.
- Benchmark BMI's Independent 5-year Pharmaceutical and Healthcare Industry Forecasts on Slovakia to test other views - a key input for successful budgeting and strategic business planning in the Slovakia pharmaceutical and healthcare market.
- Target Business Opportunities & Risks in the Slovakia Pharmaceutical and Healthcare Sector through our reviews - and major deals, projects and investments in Slovakia.
- Exploit The Latest Competitive Slovakia Pharmaceutical and Healthcare Intelligence & company SWOTS on your competitors and peers through company rankings by sales, market share and ownership structure – includes multi-national and national companies in Slovakia. '
Business Monitor International's Slovakia 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 Poland's pharmaceuticals and healthcare industry.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
