The Pharmaceutical Market: Slovakia

Summary

Slovakia represents one of the smaller pharmaceutical markets in Central & Eastern Europe, but in per capita terms, it ranks as the fourth largest. As with other countries in the region, pharmaceuticals account for around a quarter of total health expenditure. Approximately 77% of the pharmaceutical market is supplied by imports and domestic production concentrates principally on generic drugs. Zentiva, the largest local manufacturer of branded generic drugs, accounted for 28% of the market in volume terms in 2007. Generics currently represent around 65% of the market in volume terms and 35% in value terms.

Data from the State Institute for Drug Control (SUKL) show that the average price of medicine increased consistently between 2002 and 2006. However, in April 2007, the MoH implemented a mandatory 6.6% cut in the retail price of pharmaceuticals due to the strengthening of the Slovak koruna against the Euro and US dollar. Concerns were raised over the impact this would have on the generic market, as the prices of such pharmaceuticals often decrease after launch.

The regulatory environment in Slovakia has improved in recent years, particularly with regard to intellectual property; the USTR has not included Slovakia on its Special 301 Report Watch List since 2005 and the '8+2+1' data exclusivity formula protects authorised originals from generic competition. The standard patent term is 20 years and Supplementary Protection Certificates offer further protection.

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