Boston, MA -- (SBWire) -- 03/15/2013 --Executive Summary
BMI View: Croatia's entrance into the EU will accelerate its economic liberalisation and the development of the private sector. It is also likely to bring about an influx of EU funding in modernising the country's economy. The Croatian pharmaceutical market continues to pose a challenging environment to domestic and international drugmakers, but we believe EU accession will ease the regulatory burden as legislation is harmonised with EU norms. In 2013 the economy is expected to post weak growth in anticipation of capital inflows from the EU. However, VAT rises and inflation suggest that growth seen in 2013 will not be due to increased drug consumption. We forecast weak pharmaceutical market growth for the next decade due to the prevailing economic conditions in Europe. Healthcare and medical devices spending is projected to rise significantly over the next 10 years, caused by the rapidly aging population.
View Full Report Details and Table of Contents
Headline Expenditure Projections
- Pharmaceuticals: HRK7.50bn (US$1.37bn) in 2012 to HRK7.65bn (US$1.33bn) in 2013; 2% in local currency and -3.4% in US dollar terms. Forecast unchanged from Q113.
- Healthcare: HRK25.09bn (US$4.59bn) in 2012 to HRK26.15bn (US$4.53bn) in 2013; +4.2% in local currency and -1.3% in US dollar terms. Forecast unchanged from Q113.
Risk/Reward Rating: Croatia's RRR score remains unchanged from Q113, however this should be seen as a positive development, as the regional average score has decreased from 51.2 to 50.7. The country's Industry Risk score remains above the regional average, indicating the country's relatively favourable regulatory regime for drug approvals compared to its neighbours. However, in the categories of Industry Rewards, Country Rewards and Country Risk, Croatia scores below average, highlighting its challenging market conditions.
Key Trends And Developments:
- Accession to the EU in June 2013 will see an inflow of EU funding into reforming and modernising the country's economy, legislative bodies, healthcare system and business environment. The benefits of these will only be felt in the medium-to-long term, but promise to boost pharmaceutical spending as Croatia's economy grows.
- The accrual of debts by hospitals and the CIHI has become a major problem for pharmacies and wholesalers, who are owed significant amounts of money by the state. Moreover, the state has taken towards centralising procurement of specific drugs and medical supplies to cut costs.
- The implementation of a clawback tax on pharmacies and producers to ensure neutral budgets has added to the strain on pharmacies and drugmakers. Prescriptions and drug consumption will continue to rise even as unemployment climbs and the economy slowly recovers.
- Price controls or co-payments on expensive medicines are to be introduced this year as the cost of funding these (especially anti-cancer drugs) rises significantly.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Healthcare research reports at Fast Market Research
You may also be interested in these related reports:
- Nigeria Pharmaceuticals & Healthcare Report Q2 2013
- Poland Pharmaceuticals & Healthcare Report Q2 2013
- Australia Pharmaceuticals & Healthcare Report Q2 2013
- Mexico Pharmaceuticals & Healthcare Report Q2 2013
- Partnerships, Licensing, Investments and M&A Deals andTrends in Pharmaceuticals - Q2 2012
- Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q2 2011
- Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q1 2012
- Presidio Pharmaceuticals, Inc. - Pharmaceuticals & Healthcare - Deals and Alliances Profile
- Affectis Pharmaceuticals AG - Pharmaceuticals & Healthcare - Deals and Alliances Profile
- Bayer Healthcare LLC - Pharmaceuticals & Healthcare - Deals and Alliances Profile
New Market Research Report: Croatia Pharmaceuticals & Healthcare Report Q2 2013
Fast Market Research recommends "Croatia Pharmaceuticals & Healthcare Report Q2 2013" from Business Monitor International, now available