PHARMA MARKETS OF EASTERN EUROPE

The total market for pharmaceuticals in the countries of eastern Europe (excluding Albania) is forecast to reach a value of $3.5 billion by 1995, according to a new two-volume study published by Financial Times Management Reports.

The largest annual growth rate over the period will be experienced by the former German Democratic Republic, at 8.7%, according to the report's author, Ann Francis. Hungary will show average annual growth of 8.1%, Poland's growth will be 8.0% per annum, while for the Czech and Slovak Republics the advance will be 6.8%, for Bulgaria 6.7%, for Romania and what was Yugoslavia 5.0% each and for the CIS (former Soviet Union) 4.0%. However, an estimate by the report of the largest increases in market size during 1990-95 indicates that the most substantial rise over the period will be experienced by Hungary, followed closely by the GDR, and the CIS will again achieve the lowest value.

First Industry-Wide Privatization The first volume of the report notes that the governments of the Czech and Slovak Republics have retained the services of the Boston Consulting Group to advise on the reorganization and potential privatization of the pharmaceutical industry. This move is being seen as the national government's first attempt to restructure a whole industry sector, as opposed to privatization of individual companies. The Czech/ Slovak pharmaceutical industry currently produces around 1,600 drug products, with a further 900 being imported, mainly from the former Comecon countries.