Boston, MA -- (SBWire) -- 08/01/2013 --The Greek pharmaceutical market will continue to be characterised by mandated price reductions, state intervention in pharmaceutical trade and regressive revenue taxes. Although there have been positive developments towards the payment of hospital debts, the Greek state will need to cut healthcare costs and drive efficiency to prevent debt from building up again. Moreover, the Greek government will continue to shift the burden of healthcare spending onto its citizens, requiring co-payments for expensive drugs and payments for outpatient visits.
Headline Expenditure Projections
- Pharmaceuticals: EUR5.99bn (US$7.61bn) in 2012 to EUR5.62bn (US$7.53bn) in 2013; -6.2% in local currency terms and -1.1% in US dollar terms.
- Healthcare: EUR17.22bn (US$21.86bn) in 2012 to EUR14.85bn (US$19.90bn) in 2013; -13.7% in local currency terms and -9.0% in US dollar terms. Forecasts changed due to historic revisions to healthcare expenditure.
View Full Report Details and Table of Contents
Risk/Reward Rating: Greece has a RRR score of 58 out of 100, making it the fourth most attractive pharmaceutical market in the Central and Eastern Europe region. Although Greece's financial outlook has stabilised and debts are being paid, the spectre of further price cuts, clawback taxes and the ability of the EOPYY to pay drugmakers in a timely manner present significant risks to the industry in the medium term.
Key Trends And Developments
Generic prescription drugs are set to become more widely available and preferentially prescribed as guidelines from the Ministry of Health and EOPYY filter down to medical professionals.
The Ministry of Finance has paid some EUR567mn worth of debt accumulated by hospitals, using a portion of its IMF loan package to inject liquidity into the healthcare system.
Prime Minister Antonis Samaris met with Health Ministry officials on Tuesday February 26 to discuss keeping the EOPYY afloat under its mounting debts. Preliminary talks ended with an agreement that at the end of March, some EUR750mn (US$986mn) would be released from the government's EUR2bn (US $2.63bn) reserves to pay the EOPYY's debts, including those to pharmacies, hospitals and drugmakers. Earlier in January, the Greek government unilaterally applied a 'haircut' of 20% on debts owed by the EOPYY to hospitals, pharmacies and suppliers. However, the pharmaceutical industry's debts would receive a smaller haircut of 8% owing to the taxes imposed on the sector in the form of clawback and revenue taxes.
A union representing doctors and staff of the EOPYY noted that the decision to implement the haircut would cost the healthcare sector EUR300mn (US$395mn), and that many private clinics, pharmacists and diagnostic centres will turn away patients insured by the EOPYY. The health ministry has also recently introduced draft bills to end the revenue tax on the industry in return for reduced payments by the EOPYY to old debts.
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 Q3 2013
- Croatia Pharmaceuticals & Healthcare Report Q3 2013
- Kuwait Pharmaceuticals & Healthcare Report Q3 2013
- Sweden Pharmaceuticals & Healthcare Report Q3 2013
- Australia Pharmaceuticals & Healthcare Report Q3 2013
- Lebanon Pharmaceuticals & Healthcare Report Q3 2013
- Canada Pharmaceuticals & Healthcare Report Q3 2013
- Oman Pharmaceuticals & Healthcare Report Q3 2013
- Portugal Pharmaceuticals & Healthcare Report Q3 2013
- Mexico Pharmaceuticals & Healthcare Report Q3 2013
New Market Research Report: Greece Pharmaceuticals & Healthcare Report Q3 2013
New Healthcare market report from Business Monitor International: "Greece Pharmaceuticals & Healthcare Report Q3 2013"