Romania's pharmaceuticals market is characterised by high growth and increasing levels of foreign direct investment ahead of planned EU accession. The value of Romania's pharmaceutical market in 2005 was US$1.4bn at retail prices and strong growth is predicted, making investment in the country more attractive. By 2010, the value of the pharmaceuticals industry is forecast to reach nearly US$2bn.

The 18% increase in market size in 2005 was primarily attributed to improved consumer access to medicines. Penetration by foreign firms is also increasing. The market share of imported drugs rose from 45% to 75% in the nine years to 2004; however, these products accounted for only a fifth of the sales by volume, which suggests that local low-cost drugs are popular and widespread. Growth of the generics sector is forecast to be 15-20% per annum, while the total market will grow by 10-15% per annum in the mid-term.

BMI's adjusted Business Environment Rankings for Central & Eastern Europe place Romania fourth out of the 14 markets in the survey, which is a significant improvement compared to last quarter's 11th position. The primary reason for the rise is the country's reassessed market growth potential which is higher than most of its neighbours. Romania, like other CEE nations, is also demonstrating improved political and economic risk as the region embraces EU membership.

For the remainder of 2006, the upturn is forecast to continue, with year-on-year growth expected to be between the current rate of 14.5% and last year's 18% towards the end of 2006. These growth figures are a clear indication of the buoyancy of Romania's market. Recent high-profile acquisitions by Czech firm Zentiva and India's Ranbaxy, coupled with the exit of many smaller firms over the last couple of years, have transformed the domestic landscape, and will further boost the market.

Following EU accession in January 2007, the prices of pharmaceuticals in Romania are set to rise, which will negatively affect consumers in the short term but will ultimately benefit them. The move is in order to prevent parallel importers from plundering the country's wholesale medicine warehouses, leading to shortages of drugs in hospitals and pharmacies. The Ministry of Health is currently drafting the appropriate policy with regard to raising prices and a document is expected in the coming months.

Key Benefits of Report

Rely 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.

Additional Information

Scope of Report

Executive Summary & Industry SWOT

An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI's forecast analysis, and taken together with BMI's Economic and Business Environment SWOTS, give a complete overview of market climate.

Market Summary

Outline of market characteristics, growth factors, leading therapeutic segments and a competitivness of the market.

Regulatory Regime

Guide to and analysis of country intellectual property developments and pricing & reimbursement issues, which constitute the regulatory make-up of the market.

Industry Developments

Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D and patent legislation.

BMI 5-Year Industry Forecast

5-Year Forecasts to end-2010 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Drug market expenditure (US$bn); drug expenditure per capita (US$); as % of gdp

Prescription drug market (US$bn)/as % of total market; sales by alimentary tract/metabolism; antibiotics, cardiovascular, central nervous system, oncology, musculoskeletal and respiratory system

OTC market (US$bn)/as % of total market (sales by analgesic, cough and cold, digestives, skin treatments, vitamins and minerals)

Generics market (US$bn)/ as % of total market

Health expenditure (US$bn, % of gdp and per capita); public sector health expenditure as % of total; number of hospitals; beds, hospital admissions, doctors, births and deaths per 000 population Forecasts based on bespoke BMI economic modelling, using

historical data sets of macroeconomic and industry variables to derive rigorous statistical relationships, anchored in advanced linear regression techniques.

BMI 5-Year Macroeconomic Forecasts

BMI forecasts for all headline macroeconomic indicators, including:
Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt

Competitive Landscape & Profiles

Intelligence on the market position of major MNC power houses and indigenous companies. BMI profiles key research-based companies. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.

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