Pharma Industry Booming in Eastern Europe

Eastern Europe’s pharmaceutical market is forecast to grow at a CAGR of more than 10 percent to be worth more than $41 billion by 2014, according to a report from globalbusinessinsights.com. The highest sales are expected to be seen in the cardiovascular market ($7.8 billion), followed by alimentary canal and metabolic disorders ($6 billion).

According to the report, The Eastern European Pharmaceutical Market Outlook to 2014, the main player in the region is Novartis, which led the market with $1. 5 billion in sales in 2007 thanks to the marketing of both generic and branded pharma products. However, the leading treatment in 2007 was Sanofi-Aventis’ Lovenox (enoxaparin) with sales of $152 million.

Traditionally, pharma companies have been quite successful in Eastern European countries; however, healthcare systems have become increasingly complex during the past few years. As a solution, governments have been attempting to reduce costs by launching healthcare reforms. Many countries have now introduced regulated health insurance systems to replace state-controlled healthcare, and the Czech Republic and Slovenia have also opened up health insurance markets to competition from private insurers. This move to curb pharmaceutical expenditure could lead to new opportunities for pharma companies involved in the manufacture of generics.