Central/Eastern European OTC Market Growth

The over-the-counter drug markets of the Czech Republic, Hungary, Poland and Russia have grown 253% over the last four years, rising from a combined value of $37 million in 1992 to $1.32 billion in 1996, says a new study from James Dudley Management.

The study, Self-Medication in Central and Eastern Europe, says the greatest growth in the period has been in Russia, which has expanded 566%, followed by Hungary growing 125%, Poland up 104% and the Czech Republic up 86%. Russia also has the largest share of the combined market, at 62%, but its consumption of self-medication products is high only because of the size of its population. In fact, it has the lowest per capita consumption, the lowest average monthly wage and the greatest discrepancy between inflation and rising wages.

The fast growth in these markets is being fueled by western drugmakers, the top nine of which account for almost 17% of the four countries' combined pharmacy market. The leading company is Rhone-Poulenc Rorer with 6.2% of the total, followed by Sterling and SmithKline Beecham with 4.6%, Boehringer Ingelheim and Bristol-Myers Squibb on 1.5% each and Roche with 1.3%. Shares under 1% are held by Bayer, Boots, Ferrosan and Procter and Gamble, but the report notes that P&G also has significant sales Hungary's parapharmaceutical market.