Slovenia Pharmaceuticals and Healthcare Report Q4 2008

Summary

In the BMI Business Environment Ranking matrix adjusted for this quarter, Slovenia continued to slip down the table ranking the 17 regional markets surveyed in Central and Eastern Europe (CEE). In Q408, Slovenia is ranked joint thirteenth, down from a ninth position in Q308 and sixth earlier in the year.

However, the change is more a function of the improvement of business environments in other CEE markets than the worsening of conditions in Slovenia. Nevertheless, the countrys attractiveness will continue to be negatively affected by its limited population number, negligible population growth and the low growth forecasts of a relatively mature market.

Nevertheless, this is not to say that drugmakers cannot find any commercial opportunities in Slovenia.

The countrys developed private insurance coverage and established trade regimes with Western Europe allow for good placement of novel drugs onto the market, especially as international pressure eventually results in the improvement of its intellectual property (IP) regime. Additionally, while Slovenia is judged by a new survey of life expectancy to be the healthiest of the 10 new European Union (EU) members that entered the Bloc in 2004, its BMI's Burden of Disease Database (BoDD) indicates that Slovenia lags behind Cyprus and Malta in terms of the number of disability-adjusted life years (DALYs) lost. This indicates existing opportunities for companies active in chronic disease segments in particular.

However, difficult conditions in the Slovenian pharmaceutical market cannot be ignored. For some months now, Krka - one of the two key pharmaceutical producers in the country - has intensified its focus on foreign markets. Most recently, Krkas chief executive indicated that the company may be looking to take over a larger pharmaceutical firm, as well as a smaller company in the region. Krka is reportedly willing to pay up to US$2.33bn for the acquisition. Previously, in April 2008, Krka opened a new business centre in Former Yugoslav Republic (FYR) of Macedonias capital, while, in November 2007, it acquired German generics maker TAD Pharma. Krka also recently became a minority owner in two private pharmaceutical and chemical companies in China.

The local market, which features a strong generics presence, is likely to become even more competitive following the June 2008 acquisition of Merck KGaA's CEE generics business by US drugmaker Mylan.

The US player had previously already purchased the German firm's generics businesses in Western Europe, Asia Pacific, Africa and North America, consolidating its position as a top three player in four major EU markets, including the United Kingdom. While Mylan has little experience of operating in CEE, the acquired Merck KGaAs operations and Mylans controlling interest in Indian active pharmaceutical ingredient (API) manufacturer Matrix Laboratories should allow the company to compete effectively against local rivals and multinationals alike.

Contents

• Executive Summary
  • Slovenia Pharmaceuticals And Healthcare Industry SWOT
  • Slovenia Political SWOT
  • Slovenia Economic SWOT
  • Slovenia Business Environment SWOT
• Pharmaceutical Business Environment Ratings
  • Table: Central And Eastern Europe Pharmaceutical Business Environment Rankings For Q408
  • Limits Of Potential Returns
  • Risks To Realisation Of Returns
  • Slovenia - Market Summary
• Regulatory Regime
  • Intellectual Property Regime
  • IP Deficiencies
  • Patent Disputes
  • Pricing System
  • Reimbursement Policies
  • Eurozone Entry
  • Industry Developments
  • Epidemiology
  • Table: Leading Causes Of Death In Slovenia, 2002
  • Healthcare Sector
  • Healthcare Provision Developments
  • Healthcare Insurance
  • Healthcare Expenditure
  • Pharmaceutical Industry
  • Recent Industry Developments
  • Medical Devices
• Industry Forecast Scenario
  • Overall Market Forecast
  • Table: Slovenia - Drug Expenditure Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Key Growth Factors - Industry
  • Table: Slovenia - Health Expenditure Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Macroeconomic Forecast Scenario
  • Table: SLOVENIA - ECONOMIC ACTIVITY
  • Prescription Market Forecast
  • Table: Slovenia - Prescription Market Indicators, 2004-2012 (EURmn unless otherwise stated)
  • OTC Market Forecasts
  • Table: Slovenia - OTC Market Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Patented Market Forecast
  • Table: Patented Drug Market Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Generics Markets Forecast
  • Table: Generic Drug Market Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Export/Import Forecasts
  • Table: Slovenia - Pharmaceutical Trade Indicators, 2004-2012 (EURmn unless otherwise stated)
  • Other Healthcare Data Forecasts
  • Table: Slovenia - Other Health Indicators, 2004-2012
  • Key Risks To BMIs Forecast Scenario
• Competitive Landscape
  • Table: Leading Companies In Slovenia. 2007
  • Company Profiles
  • Multinational Company Profiles
  • GlaxoSmithKline
  • Sanofi-Aventis
  • Pfizer
  • Novartis
  • Merck & Co
  • Indigenous Company Profiles
  • Krka
  • Lek (Novartis/Sandoz)
• BMI Forecast Modelling
  • 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