Romania's Pharma market set to grow at 9% CAGR

Sales of pharmaceutical products in Romania will increase over the next five years, with imports playing an important role in terms of sector growth. Sales of prescription drugs and over-the-counter (OTC) medications are expected to grow from $3 billion to $4.64 billion, representing a compound annual growth rate (CAGR) of 9.09%, reports Research and Markets.

According to data presented by the Cegedim, it notes, the Romanian pharmaceutical market grew by 6.6% year-on-year to reach a value of 1.94 billion euros. However in volume terms, the market actually decreased by 2.3%. As such, analysts expect the market to stagnate in 2009, or even experience a slight decline. With regard to the corporate sector, recent data suggest that Swiss drug major Roche has now become the lead pharmaceutical manufacturer present in Romania with a market share of 7.3 %, followed by France's Sanofi-Aventis with 6.9% and the UK's GlaxoSmithKline also with 6.9%.

As part of efforts to improve public healthcare facilities, Health Minister Ion Bazac inaugurated a new obstetrics and gynecology hospital in Bucharest. The facility, which has 195 beds, is the first medical unit to meet European Union approved standards in the country. The hospital, which is designed to provide labour and delivery assistance, prenatal care as well as gynaecological examinations, was opened as a result of a 7 million euros investment.

According to representatives of the Romanian pharmaceutical industry, the price of OTC medicines has increased by up to 50% in some cases since the first quarter of this year. A 50% price rise has also been registered for some cold medications, while considerable price increases have also been registered in the analgesic therapeutic segment. Distributors and importers argue that the increase in price is primarily due to the fall of the Leu against the euro, as most OTC medications are imported. Importers have had to adjust prices to reflect changes in the exchange rates, which in turn, have translated into higher prices paid by consumers.