Pharma giants generate 1.5bn-euro sales

The top 20 largest companies on the Romanian pharmaceutical market control almost 80% of sales, up from 70% a year ago, with the industry witnessing a strong concentration trend, according to data provided by Cegedim Romania market research company.

“We’re witnessing market consolidation. Whereas until 2009 the top 20 companies held around 70% market share, starting 2010 they are nearing 80%,” said Petru Craciun, Cegedim Romania general manager.

Overall, the top 20 companies last year logged sales worth 6.3bn RON (1.5bn euros), up 22.4% from 2008.

A new name climbed to the top last year, as changes were also triggered by the international mergers and acquisitions that impacted on the Romanian market. Thus, the takeover of Zentiva, owner of the former Sicomed Bucuresti producer, propelled Sanofi-Aventis to the top of the ranking, with a 10.1% market share and comfortably ahead of Hoffmann La Roche, with a 9% share. Overall, international transactions produced four changes in the top ten, while the domestic deal between Ozone and LaborMed pushed the two companies in top 20.

At the level of the entire year, the Romanian pharmaceutical market reached 8.1bn RON, up 13.1% from 2008, but it shrank in terms of volume by 9.1%. In euros, sales fell by 1.7%, to 1.9bn euros.

From a territorial point of view, cities with more than 250,000 inhabitants generated 55% of sales. This was also the only segment where sales went up, while in medium-sized cities, accounting for a 27% share, sales dropped by 1.1%; towns and the rural areas saw the steepest decline.

The market evolution in terms of value in the context of falling volumes is accounted for by the rising sales of expensive products.

According to Cegedim data, in terms of value, the weight of products with prices over 50 euros rose last year to 34.2%, from 28.5% in 2008, while the weight of products priced below 5 euros declined considerably. Thus, though the Health Ministry imposed a price cut, the move was not felt on the market as producers promoted their expensive products, appealing both to distributors and pharmacies.

At the level of last year, 791 new products were launched, while 547 drugs exited the market. New products last year generated sales worth 34m euros, while the products that exited had generated 13.21m euros in 2008.