Contents Executive summary 3 Market overview 4 Pharmaceutical sales rise y/y in EUR, RON terms in Q1/2015 4 Medicine price cut expected to drive downwards pharma market value in 2015 4 Sanofi tops pharma companies ranking in 12 months ending March 2015 5 Pharmaceutical imports, exports decline in 2014 6 Production of medicines inches up 1.5% y/y in Q1/2015 6 Producers 7 Domestic pharmaceutical producers focus on exports, developing OTC portfolio 7 Antibiotice Iasi seeks investors for building new production capacities 7 Zentiva reports higher revenues, lower profit in Q1/2015 8 Gedeon Richter’s sales in Romania down y/y in Q1/2015 8 Biofarm plans acquisition of local peer 9 Distribution & Retail 9 Polisano to sell 25% stake to investment fund for €30mn 9 Farmaceutica Remedia expects higher revenues, profit this year 10 Dona pharmacy chain launches online store 10 A&D Pharma moves on with expansion of Punkt chain 11 Ropharma plans investments in pharmacy chain expansion this year 11
Table 1 Pharmaceutical production in 2011-2015 (monthly, y/y) 7 Table 2 Antibiotice SA- Selected financials in 2013-2015 (RON, y/y) 8 Table 3 Zentiva SA- Selected financials in 2013-2015 (RON, y/y) 8 Table 4 Biofarm SA- Selected financials in 2013-2015 (RON, y/y) 9 Table 5 Farmaceutica Remedia SA- Selected financials in 2013-2015 (RON, y/y) 10 Table 6 Ropharma S.A.- Selected financials in 2013-2015 (RON, y/y) 11
Figure 1 Pharma quarterly sales in 2006-2015 (€mn, PPP) 4 Figure 2 Pharmaceutical market demand in 2007-2017f (annual, $mn) 5 Figure 3 Top 10 pharma companies by revenues in 12 months ending March 2015 (RONmn) 5 Figure 4 Pharmaceutical products foreign trade in 2003-2014 (monthly, €mn) 6 Figure 5 Pharmaceutical product manufacturing-Foreign trade in 2007-2017f ($mn) 6 Figure 6 Pharmaceutical manufacturing index in 2011-2015 (monthly, 2010=100, unadjusted)
This report covers the market developments in Q1/2015 and the data available as of May 2015.
The pharmaceutical sales performed above market expectations and increased at double-digit annual pace in Q1/2014 in RON and EUR terms, after having risen by 11.8% y/y in the previous quarter (up by 9.7% y/y in EUR terms). Sales of OTC drugs surged by 27.7% y/y to RON0.6bn, while the hospital segment amounted to RON0.4bn, up by 11.5% y/y.
In the 12 months ending March 2015, the pharmaceutical market value increased by 10% y/y to RON12.6bn. The Rx segment advanced by 7.4% y/y in RON terms, while the OTC and hospital sales increased by 20.6% y/y and 11.7% y/y respectively.
The performance of the Romanian pharmaceutical market is influenced by a broad variety of factors, among which the most important are related to regulatory measures and public spending. Accordingly, the announced medicine price cuts might drive downwards the pharmaceutical sales value this year, to minus 2.8% y/y in local currency terms, according to market data. In terms of actual demand, however, considering the aging population, there is enough room for growth. Our QuERi database forecasts show that the demand for treatment will continue increasing in 2015-2017.
Pharmaceutical sales rise y/y in EUR, RON terms in Q1/2015
Medicine price cut expected to drive downwards pharma market value in 2015
Pharmaceutical imports, exports decline in 2014
Antibiotice Iasi seeks investors for building new production capacities
Biofarm plans acquisition of local peer
Polisano to sell 25% stake to investment fund for €30mn
Dona pharmacy chain launches online store