Pharmaceutical companies in Greece face unprecedented challenges. The dire fiscal situation in the country is translating into clear operating difficulties for the industry, both in Greece and potentially elsewhere. While Greece maintains a strong score within our Business Environment Ratings for this quarter, subsequent revisions will see a serious deterioration as drugmakers see limited attractiveness in entering the market.
Pricing revisions are at the centre of controversy in Greece, as the Ministry of Economy, Competitiveness and Shipping are trying to introduce across-the-board progressive price-based reductions to 12,150 products. Products with a wholesale price from EUR1.01-EUR5.00 would be reduced by 3%, from EUR5.01-EUR2.00 by 20%, from EUR20.01-EUR50.00 by 23%, from 50.01-EUR100.00 by 25% and above EUR100.01 by 27%. Orphan drugs and blood products are exempt from the reductions.
Touted as a short-term fix during the transition to the applied new pricing measures, BMI cautions that while the industry could survive a short-term hit in revenues, Greece's dire fiscal situation has the potential to prolong the short-term negative pricing environment. The healthcare system is one of Greece's major debt-hoarders. The European Federation of Pharmaceutical Industries and Associations (EFPIA) lodged a formal complaint with the European Commission (EC) over Greece's non-payment of debts in late 2009.
While the government has looked to resolve the debt issues through bond issues, price cuts have caused major discontent within the industry, resulting in Danish firms Novo Nordisk and Leo Pharma both announcing strategic product withdrawals in Greece, potentially triggering a cascade of similar moves from the pharmaceutical industry to limit a contagion effect. While the new market decree and the associated fallout will have a negative impact on the Greek market, BMI notes that longer-term price erosion in Greece has the potential to affect market conditions across Europe. The use of reference pricing systems across Europe means that Greece is often included in the basket of countries used to determine prices in other European states. Another major worry for pharmaceuticals is Greece renewing its status as a major hub for parallel exports across the EU.
Complicating the issue, the Ministry of Commerce issued a letter to pharmaceutical industry associations on May 19 2010 allowing companies to submit an appeal against the interim pricing measure, a course of action rapidly enacted by drugmakers.
While uncertainty prevails over the outcome of price negotiations, there are clear risks to our forecast scenario for Greece. Regardless of the outcome, however, BMI believes 2010 will see an outright contraction in total pharmaceutical sales, with the originally devised pricing revisions, combined with greater pressure on effective prescribing, placing downward pressure on overinflated historic spending.
For more information or to purchase this report, go to:
- http://www.fastmr.com/
Report Table of Contents:
Executive Summary
SWOT Analysis
- Greece Pharmaceuticals And Healthcare Industry SWOT
- Greece Political SWOT
- Greece Economic SWOT
- Greece Business Environment SWOT
Pharmaceutical Business Environment Rating
- Table: Central and Eastern Europe Pharmaceutical Business Environment Ratings for Q310
- Limits Of Potential Returns
- Risks To Realisation Of Returns
Greece - Market Summary
Regulatory Regime
- Intellectual Property Regime
- Pricing Regime
- Reimbursement Regime
Industry Developments
- Epidemiology
- Table: Disease Burden In CEE
- Healthcare System
- Secondary Care
- Recent Healthcare Provision Developments
- Healthcare Expenditure
- Healthcare Reforms
- Research and Development
Industry Forecast Scenario
- Overall Market Forecast
- Key Growth Factors - Industry
- Key Growth Factors - Macroeconomic
- Economic Activity I
- Economic Activity II
- Table: Greece - Economic Activity, 2007-2014
- Prescription Drug Market Forecast
- Patented Product Market Forecast
- Generic Drug Market Forecast
- OTC Medicine Market Forecast
- Pharmaceutical Trade Forecast
- Medical Device Market Forecast
- Key Risks To BMI Forecasts
Competitive Landscape
- Pharmaceutical Industry
- Wholesale And Retail Sectors
- Recent Pharmaceutical Industry Developments
Company Monitor
- Indigenous Company Profiles
- Vianex
- Lavipharm
- Elpen
- Genesis Pharma
- Genepharm
- Pharmathen Pharmaceuticals
- Kleva
- Alapis Pharma
- Multinational Company Profiles
- GlaxoSmithKline
- Pfizer
- Novartis
- Sanofi-Aventis
- Merck & Co
- Abbott Laboratories
BMI Methodology
- How We Generate Our Pharmaceutical Industry Forecasts
- Pharmaceutical Business Environment Ratings Methodology
- Ratings Overview
- Table: Pharmaceutical Business Environment Indicators
- Weighting
- Table: Weighting Of Components
- Sources
Forecast Tables
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
