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Slovenia Pharmaceuticals & Healthcare Q4 2006Published by: Business Monitor International Published: Oct. 1, 2006 - 62 Pages Table of Contents
AbstractSlovenia boasts a small but advanced pharmaceutical market, which holds modest longer-term potential. Main drivers of future growth include the ageing population and rising demand for novel treatments, as well as local investment by foreign companies. However, the market is poised for period of uncertainty as the country adopts the euro in January 2007 - primarily as result of overstocking in late 2006 in anticipation of higher prices - although the euro will boost foreign direct investment (FDI) and imports. Additionally, problems with intellectual property (IP) and pricing and reimbursement regimes will continue to cause concern for foreign research-based manufacturers. The pharmaceutical market was valued at US$517mn in 2005, which equates to annual per capita expenditure of over US$200. BMI expects the value of the market to reach US$718mn by 2010. Prescription medicines will remain dominant, at around 90% of the total. Over-the-counter (OTC) segment will benefit from cost-containment pressures, as well as improvements in patient purchasing power and possible deregulation of the retail pharmacy market. Generic drugs will continue to receive government support, as the authorities protect the local industry, although therapeutic advances and rising healthcare expectations will promote the branded sector growth. In regional terms, BMI's adjusted Business Environment Rankings for Central and Eastern Europe (CEE) place Slovenia in the tenth place. The country lags behind a number of its neighbours, not just the more advanced markets such as the Czech Republic, but also its faster-growing immediate neighbours, such as Bulgaria. Factors include the strong local manufacturing sector, market saturation and certain deficiencies within the country's regulatory infrastructure, and in particular reimbursement policy. Slovenia's pharmaceutical demand is almost met by domestic production and imports on an almost equal basis in value terms. Local generic leaders Krka and Lek dominate the landscape, with multinationals mostly involved through imported medicines rather than local production. CEE markets in general and, more specifically, Eastern European, South-Eastern European and the Commonwealth of Independent States (CIS) markets are the key destinations for Slovenian export production. Given the relatively small size of the Slovenian market and its comparatively mature level of development, the majority of Slovenia's pharmaceutical output will mostly continue to be destined for export. |
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