Azerbaijan Pharmaceuticals and Healthcare Report Q4 2017
Azerbaijan's pharmaceutical market outlook is dependent on the successful launch of itscompulsory health insurance system. This will considerably reduce the reliance on out-of-pocket payments,increasing medicine affordability and accessibility. Preference for generic and non-prescription medicineswill remain prominent given the low-income nature of the population.
Healthcare Expenditure Projections
Pharmaceuticals: AZN497mn (USD309mn) in 2016 to AZN510mn (USD287mn) in 2017; +2.5% inlocal currency and -7.0% in US dollar terms.
Healthcare: AZN4.21bn (USD2.61bn) in 2016 to AZN4.63bn (USD2.61bn) in 2017; +10.0% in localcurrency and -0.3% in US dollar terms.
Azerbaijan will remain a highly unattractive market for innovative medicine launches, reflected in its scoreof 30.8 out of 100 in BMI's Innovative Pharmaceuticals Risk Reward Index, ranking it third from bottom inthe Europe region. Weak purchasing power and restricted access to healthcare services will continue toimpede growth of patented drugs while the regulatory environment will pose significant market accessbarriers.