Boston, MA -- (SBWIRE) -- 08/17/2012 -- BMI View: The short-term outlook for the Serbian pharmaceutical market will continue to be clouded by corruption, debts accrued by the country's health insurance agency and also the liquidity of the country's wholesalers. Additionally, the challenging economic situation will hamper the purchase of necessary medicines by the majority of the cash-strapped population, especially as out-of-pocket contribution to healthcare in general stands at almost 40%. We therefore envisage generic medicines gaining further ground on their patented counterparts, although imports will continue to play an important part in the overall market.
Headline Expenditure Projections
- Pharmaceuticals: RSD74.78bn (US$1.02mn) in 2011 to RSD79.30bn (US$934mn) in 2012; +6.0% in local currency terms and -8.4% in US dollar terms. Forecast slightly lower from Q212 due to macroeconomic factors.
- Healthcare: RSD335.38bn (US$4.57bn) in 2011 to RSD360.98bn (US$4.25bn) in 2012; +7.6% in local currency terms and -7.0% in US dollar terms. Forecast slightly lower from Q212 due to macroeconomic factors.
- Medical devices: RSD16.97bn (US$231mn) in 2011 to RSD17.71bn (US$209mn) in 2012; +4.3% in local currency terms and -9.8% in US dollar terms. Forecast lower from Q212 due to macroeconomic factors.
View Full Report Details and Table of Contents
Business Environment Rating: In BMI's regional Risk/Rewards Rating (RRR) matrix for Q312, Serbia moved up by two places, now ranking 14th out of the 20 key markets surveyed. However, its composite score is unchanged from Q212, with its overall risks and rewards scores both remaining below the regional average. Issues such as insufficient funding for public healthcare and corruption will continue to hamper the development of legitimate medicines market.
Key Trends & Developments
- In May 2012, Serbian drugmaker Hemofarm, a subsidiary of German firm Stada Arzneimittel, started direct sales to state-run pharmacies, which allows it to avoid some wholesalers. The company said the new policy will help it reduce the complexity of the supply chain. Hemofarm previously incurred losses after some Serbian pharmaceutical wholesalers did not make payments for medicines manufactured by the company, which resulted in a write-down for Stada.
- In February 2011, Serbia's state-run health insurance fund secured a 10% write-down of its debt to drugmakers, valued at more than RSD14bn (US$186mn), according to the fund's general manager Aleksandar Vuksanovic. The fund has also promised to accelerate payments for delivery, having negotiated deals with domestic drugmakers Galenika and Jugoremedija for terminating a portion of their claims, as well as reducing some prices for new deliveries.
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:
- Egypt Pharmaceuticals & Healthcare Report Q3 2012
- Taiwan Pharmaceuticals & Healthcare Report Q3 2012
- Romania Pharmaceuticals & Healthcare Report Q3 2012
- Cipher Pharmaceuticals Inc. (DND) - Pharmaceuticals & Healthcare - Deals and Alliances Profile
- Turkey Pharmaceuticals & Healthcare Report Q3 2012
- Zimbabwe Pharmaceuticals & Healthcare Report Q3 2012
- Oman Pharmaceuticals & Healthcare Report Q3 2012
- Nigeria Pharmaceuticals & Healthcare Report Q3 2012
- Canada Pharmaceuticals & Healthcare Report Q3 2012
- Peru Pharmaceuticals & Healthcare Report Q3 2012