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Croatia Pharmaceuticals & Healthcare Q4 2006Published by: Business Monitor International Published: Nov. 1, 2006 - 59 Pages Table of Contents
AbstractThe Croatian pharmaceuticals market is characterised by an extraordinarily high rate of generic penetration, distinct intellectual property deficiencies and the dominance of a solitary domestic player, according to BMI's newly published ""Croatia Pharmaceuticals & Healthcare Report"". Despite these undesirable features, growth is buoyant and market value is expected to reach US$670mn by 2010. Generic drugs account for over 70% of the market in value terms, which is unprecedented in Europe. The primary reason for the lack of branded drugs is that multinationals choose not to launch them in the country because patent laws are not observed. Compounding the issue, registration of proprietary products can take up to three years, whereas approvals of generics are fast-tracked, often taking less than nine months. However, it should be noted that co-operation with EU patent authorities is increasing, and registrations in Croatia are equivalent to those inside the EU. BMI's adjusted Business Environment Rankings for the major 14 Central & Eastern Europe markets reveal that Croatia has maintained its 13th place, just ahead of neighbouring Serbia. Croatia posts moderate scores for political risk and economic risk, but is let down by market size and domestic sector threat. Indeed, the major Croatian player is Pliva, which commands nearly a 25% market share. The firm exploits the country's bias towards generics and is increasingly looking towards other CEE countries for growth. However, Pliva is currently the focus of a bidding war between US company Barr Laboratories and Iceland's Actavis, both desperate to penetrate the booming CEE generics market. It remains to seen which foreign raider will triumph, but it is BMI's view that a takeover by Barr would be preferable for Pliva and other interested parties, as the US firm has pledged to preserve Pliva's independence. Limiting the attractiveness of the country in terms of foreign investment is the country's severe healthcare debt. By April 2006, the Croatian healthcare system had run up debts of HRK4.6bn (US$760mn), and the hospital sector on its own continues to plunge a further HRK100mn (US$17.6mn) into debt every month. The primary cause of the arrears is excessive drugs bills, which became so extreme that wholesalers were not paid for months. However, the Ministry of Health has established a control committee to audit hospital spending and tighten management, recognising that the system is approaching collapse. Officials have also proposed a change in drugs policy, with the setting up of a mainly generic essential drugs list that would be provided free of charge under the health insurance scheme, and an additional drugs list containing 'more expensive' drugs whose price difference would be met by the patient. On a positive note, the country has established a life sciences park in partnership with a Swiss-US consortium. The collaboration is the first public-private partnership between the Croatian government and a large international investor and could provide the impetus for more foreign investment. Key Benefits of ReportRely On Our Independent 5-Year Forecasts As A Benchmark to test other views - a key input for successful budgetary and strategic business planning. Target Business Opportunities & Risks through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments Exploit Latest Competitive Intelligence & Company SWOTS on your competitors and peers through company rankings by sales, market share and ownership structure - includes multinational and national companies. Get Full Details About This Report >> |
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