Lithuania Pharmaceuticals and Healthcare Report Q3 2017
BMI View: Lithuania's Ministry of Health is seeking to tackle medicine prices to increase the efficiency ofhealthcare funds. Its initiatives will principally target the generic medicine segment given its large marketshare and the relatively high prices in comparison to regional peers. We note that while this may lead to aslight uptick in patented medicine sales, the market will remain highly unattractive due to the limitedpotential for revenue growth.
Headline Expenditure Projections
Pharmaceuticals: EUR636mn (USD704mn) in 2016 to EUR662mn (USD695mn) in 2017; +4.1% inlocal currency terms and -1.2% in US dollar terms. Forecast in US dollar terms slightly increased fromprevious quarter.
Healthcare: EUR3.13bn (USD3.46bn) in 2016 to EUR3.32bn (USD3.49bn) in 2017; 6.2% in localcurrency terms and 0.8% in US dollar terms. Forecast in local US dollar currency terms slightly reducedfrom previous quarter.
Lithuania's National Audit Office and the Competition Authority stated in May 2017 that the prices ofreimbursed medicines are too high. The move is meant to strengthen the government's drive to restrictmedicine prices, enabling greater access to treatments and increasing the efficiency of state healthcarefunds.