Summary
The Hungarian pharmaceuticals market is characterised by over-consumption, insufficient insurance fund contributors and an increasingly challenging operating environment for both generic and branded drug companies, according to our newly-published "Hungary Pharmaceuticals & Healthcare Report". However, the country has an enviable market size and robust growth is forecast, with the value of the pharmaceutical market expected to reach nearly US$5bn by 2010.
Amid attempts to cut the country's budget deficit ahead of euro adoption in 2011, Hungary announced drastic changes to its healthcare system in September 2006, including new fees to see doctors, patient co-payments and new pharmacy rules. These reforms were criticised by opposition parties and by the general population, but the government pointed out that receiving the highest level of medical care with no cost penalties is not a tenable situation, hence the changes.
Instances of foreign direct investment in Hungary are increasing. GSK Biologicals announced in September 2006 that it is to build a EUR100mn (US$128mn) vaccines production facility in Godollo, outside capital city Budapest. The plant will be one of Europe's most advanced biotechnology facilities, and it will manufacture two vaccine products.
The adjusted Business Environment Rankings for Central & Eastern Europe place Hungary in eighth place, down from its premier position in Q206. The primary reason for this fall is the emergence of countries like Russia and Romania as extremely attractive places for pharmaceutical companies to operate. Nevertheless, Hungary still remains an important destination for multinationals due to its favourable geographical location and transparent operating environment.
The competitive landscape is dominated by two large domestic producers, Egis and Gedeon Richter . Both have recently posted robust financial results; however, the companies reduced their financial forecasts for 2006 as a result of price cuts and new taxes announced by the Prime Minister. Assuming the 4% "solidarity tax" on profit before taxation is approved, Gedeon Richter's profit may fall by up US$2.7mn per annum.
Key Benefits of Report
- Rely On Our Independent 5-Year Forecasts As A Benchmark
to test other views - a key input for successful budgetary and strategic business planning.
- Target Business Opportunities & Risks
through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments
- Exploit Latest Competitive Intelligence & Company SWOTS
on your competitors and peers through company rankings by sales, market share and ownership structure – includes multinational and national companies.
Scope of Report
Executive Summary & Industry SWOT
An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI’s forecast analysis, and taken together with BMI’s Economic and Business Environment SWOTS, give a complete overview of market climate.
Market Summary
Outline of market characteristics, growth factors, leading therapeutic segments and a competitivness of the market.
Regulatory Regime
Guide to and analysis of country intellectual property developments and pricing & reimbursement issues, which constitute the regulatory make-up of the market.
Industry Developments
Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D and patent legislation.
5-Year Industry Forecast
5-Year Forecasts to end-2010 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- Drug market expenditure (US$bn); drug expenditure per capita (US$); as % of gdp
- Prescription drug market (US$bn)/as % of total market; sales by alimentary tract/metabolism; antibiotics, cardiovascular, central nervous system, oncology, musculoskeletal and respiratory system
- OTC market (US$bn)/as % of total market (sales by analgesic, cough and cold, digestives, skin treatments, vitamins and minerals)
- Generics market (US$bn)/ as % of total market
- Health expenditure (US$bn, % of gdp and per capita); public sector health expenditure as % of total; number of hospitals; beds, hospital admissions, doctors, births and deaths per 000 population
Forecasts based on bespoke BMI economic modelling, using historical data sets of macroeconomic and industry variables to derive rigorous statistical relationships, anchored in advanced linear regression techniques.
5-Year Macroeconomic Forecasts
BMI forecasts for all headline macroeconomic indicators, including:
Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt
Competitive Landscape & Profiles
Intelligence on the market position of major MNC power houses and indigenous companies. BMI profiles key research-based companies. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.
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