The Romanian pharmaceutical market in the first quarter of this year reached the level of 350 million euros in acquisition prices, up 13% from a similar period last year, according to preliminary data released by Cegedim and referred to by Terapia Cluj drug maker.
As a result, the market grew at a slower pace in the first quarter of this year, after in each of the last three years drug consumption had surged in euros by 30% and 50%.
Compared with the last quarter of 2005, the drug market shrank by 1.44%, according to data quoted by Terapia. The last quarter is considered to be the best for drug makers in terms of sales.
“As a rule, the first quarter of the year is weaker than the fourth one, particularly because of January and February, which are shorter,” explains Dragos Damian, commercial manager with Terapia, the biggest domestic drug producer. Dan Zamonea, the general manager of Roche Romania is of the same opinion. He quotes a report by IMS research company, showing that the drug market decreased by 3-4% in the first two months from the last quarter of 2005.
Damian believes the start to this year was due to some specific factors that affected the drug market as a whole.
“In December 2005, we saw the government earmark some substantial funds for the payment of arrears in the ambulatory segment, which unblocked drug acquisitions. This led to stocks being accumulated in December 2005, which slowed down acquisitions in January 2006,” says Damian.
Moreover, the modification of the national catalogue of prices added to a drastic reduction of acquisitions in the ambulatory segment in the first half of March 2006. On the other hand, mark-ups on the import, distribution and pharmacy segments modified the ratio between domestic and imported products, believes Damian.
After the first three months of the year, pharmaceutical companies” reports indicate that they have developed in different ways.
According to data quoted by the company, Terapia registered an increase of 13.5% from the last quarter of 2005, the fastest pace of growth in the top 10. Terapia reported sales exceeding 25 million dollars for the first three months of the year.
“Typically for Terapia, we saw sales climb, as the commercial projects implemented as early as the first half of 2005 bore fruit and two new cardiovascular products were launched,” stated Dragos Damian.
At the other end of the spectrum, Eli Lilly sales were flat from the level posted in the fourth quarter of last year, stated Marius Savu, general manager of Eli Lilly Romania and chairman of the Romanian Association of Drug Producers and Importers (ARPIM).
In 2005, the pharmaceutical market reached the value of 4.6 billion RON (1.27 billion euros), 18% higher year-on-year, according to Cegedim data.
Pharmaceutical market
* Market growth slowed down from values of 30-50% registered in each of the last three years
* Dropped 1.44% against the last quarter of 2005
* Last year registered a value of 4.6bn RON (1.27bn euros), up 18% from the previous year
* Pace of the market to slow down slightly in the intermediate term
* The value is still likely to top 2.5bn euros.