Romania’s pharmaceuticals market remained resilient last year

Romania’s pharmaceuticals market remained resilient last year, growing by 12.4 percent to EUR 2.55 billion, and the growth trend will continue this year, experts predict, as the country has a yearly pharmaceuticals expenditure of EUR 139 per capita. Romanians need better access to innovative pharmaceuticals but these come with a hefty price tag. Meanwhile, the authorities are trying to overhaul the current public healthcare system in order to streamline spending and improve overall medical services.

Pharmaceuticals demand will soar in the coming years as Romania strives to reach the standards of Western economies, but companies are trying to cope with delayed public payments from CNAS, the health insurance house that manages the budgets for medical services and drugs. Payment terms climbed to over 300 days last year, from the EU average of 230 days. A recently introduced claw-back tax that obliges producers to pay for treatments that exceed the CNAS budget will also put additional pressure on the industry.

“Despite the positive outlook in term of pharmaceuticals demand, many market players face pressing issues regarding their profitability and liquidity levels. On top of a receivables issue resulting from severe delays in public payments, the marketplace witnessed a trend of increased competition from the second half of 2011,” says Andrei Cretu, manager, advisory and management consulting, at accountancy firm PwC Romania.

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