New Healthcare market report from Business Monitor International: "Romania Pharmaceuticals & Healthcare Report Q2 2013"

Boston, MA -- (SBWire) -- 04/30/2013 --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: RON13.52bn (US$3.90bn) in 2012 to RON14.6bn (US$4.25bn) in 2013; +8.0% in local currency terms and +9.1% in US dollar terms. Local currency forecast up from Q113 on account of macroeconomic factors; US dollar forecast further impacted by exchange rate factors.
- Healthcare: RON32.07bn (US$9.25bn) in 2012 to RON34.37bn (US$10.01bn) in 2013; +7.2% in local currency terms and +8.2% in US dollar terms. US dollar forecast revised upwards from Q113 due to macroeconomic factors.

Risk/Reward Rating

Romania's pharmaceutical Risk/Reward Rating (RRR) score for Q213 is unchanged from the previous quarter. This is the case for all other countries in BMI's proprietary system, which ranks pharmaceutical markets according to their attractiveness to multinational drugmakers. A minor re-weighting of one of the RRR components is being implemented to improve the tool, and the adjusted scores for all markets will be published in the Q312 updates of the Pharmaceuticals & Healthcare reports. Romania has a RRR score of 55.3 out of 100, making it the sixth most attractive pharmaceutical market in the Central and Eastern Europe region.

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).

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