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The former socialist countries of Central and Eastern Europe
(CEE) are close to concluding their transition to free market
economies, although the pace of economic development continues
to vary. The improvements in the economies of these countries
are forecast to drive pharmaceutical market growths in the
period 2000-2004.
All of the six markets reviewed in the update to IMS HEALTH's
Pharma Prognosis
Central and Eastern Europe 2000 are forecast to show positive
growth. Pharmaceutical sales for the six countries combined
are expected to grow at a compound annual growth rate (CAGR)
of 11.9%, at actual prices.
Because of its geographic and population size, Poland remains
the largest market, and it will retain this lead during
the prognosis period (62.1% market share of volume, and
50.4% market share of sales in 2004). Sales in Bulgaria,
Poland and the Slovak Republic are forecast to almost double
by 2004.
Most of the CEE countries have recently introduced medicines
legislation designed to bring their regulatory frameworks
in line with those of the EU. To conform with requirements,
EU member states must have an independent drug regulatory
authority. Decrees and modifications to existing laws are
still being implemented in most cases, although some governments
are seeking delays, or derogations, to the implementation
of EU pharmaceutical regulations with the aim of assisting
local manufacturers.
Pricing and reimbursement approval in the CEE countries
continues to be one of the major barriers to new product
introductions by the multinational pharmaceutical companies.
Pricing and reimbursement systems tend to be over-complex,
bureaucratic and lacking in transparency. Mostly they favour
locally or regionally produced low-priced products. Governments
will have to address these issues, as well as the time it
takes to reach pricing and reimbursement decisions, to bring
pricing systems in line with EU demands.
The six formerly socialist CEE countries studied in PPCEE
are all at different stages of healthcare reform, with varying
commitment to delivering reform promises. The need for reform
measures will be made more urgent by economic issues. Poland
has probably seen the most dramatic reform measures recently.
In Bulgaria, the long awaited prospect of healthcare reform
has been given a boost by the approval in June 2000 of a
$63.3 million loan from the World Bank. This loan will be
topped up by a sum of $23.7 million from the Bulgarian government
to provide total investment in the health sector reform
project of $87 million. The other countries are introducing
further modifications to existing reform programs.
The countries analyzed in PPCEE are all close to concluding
the transition to free market economies, although the pace
of economic development continues to vary. The main goal
now for all of these countries is achieving the economic
criteria required for accession to the European Union, even
in those countries for which this inevitably will be a longer
term objective.
Find a comprehensive and independent guide to the CEE markets
at:
Pharma Prognosis
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