Recently published research from Business Monitor International, "Romania Pharmaceuticals & Healthcare Report Q3 2013", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 08/29/2013 -- We forecast continued growth in Romania's pharmaceutical market due to greater private contributions to the cost of healthcare and a return to slight economic growth in 2013. The partial removal of elements of the clawback tax will undoubtedly provide the industry with a slight boost this year. In terms of debts and timeliness of payments, the CNAS is still within its remit to reimburse drugmakers some 210 days after request and almost RON6.3bn (EUR1.44bn) of debts remain unpaid to the industry. The tax remains most punitive for generic drugmakers with lower-value medicines and could lead to these cheaper medicines exiting the market. The tax continues to weigh down BMI's assessment of Romania's Pharmaceutical and Healthcare Risk/Reward ratings.
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Headline Expenditure Projections
- Pharmaceuticals: RON13.55bn (US$3.91bn) in 2012 to RON14.6bn (US$4.50bn) in 2013; +8.0% in local currency terms and +15% in US dollar terms. US dollar forecast up from Q213 on account of strengthening leu.
- Healthcare: RON33.99bn (US$9.80bn) in 2012 to RON36.35bn (US$11.17bn) in 2013; +6.9% in local currency terms and +13.9% in US dollar terms. US dollar forecast revised upwards from Q213 due to strength in local currency.
Romania has a RRR score of 56out of 100, making it the seventh most attractive pharmaceutical market in the Central and Eastern Europe region. Although Romania presents a long term growth story, punitive taxes, pricing controls and a lack of funding by the state for reimbursing patients will moderate the Romanian market's attractiveness to drugmakers.
Key Trends And Developments
- In February 2013 the Romanian Constitutional Court ruled that part of the clawback tax was unconstitutional. The calculation method for determining the amount the industry had to pay the Romanian government used the post-VAT price of medicines, thereby inflating the amount due back to the government. The court ruled that drugmakers had been unfairly double-taxed by the provision.
- An estimated EUR85mn (US$110mn) was expected to be collected by the Romanian health ministry through the claw-back tax in 2012, supplementing the EUR33mn (US$43mn) allocated to the ministry by the government. The tax revenue, planned to be transferred to the single health insurance fund, was to be spent on hospitals, with priority given to regional network and emergency hospitals. Newly launched drugs and medical supplies supervision programmes in Romania were also reportedly to be allocated EUR880,000 (US$1.14mn).
- Private health providers and insurers have collaborated to offer Romanian consumers private health insurance. While most Romanians are registered on state health insurance (CNAS), this offering will likely be taken up by middle class Romanians tired of the country's dysfunctional healthcare system.
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