Croatia Pharmaceuticals and Healthcare Report Q3 2009

Publication Date	June 2009
Publisher	Business Monitor
Product Type	Report
Pages	72
ISBN Number	not applicable
Product Code	BMI02112

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Summary

Of the 20 markets measured in BMI's Q309 Pharmaceuticals & Healthcare Business Environment Rankings for Central and Eastern Europe (CEE), Croatia is placed 10th, reflecting the country's middleranking attractiveness for multinational companies. While the Croatian market is making great efforts to align regulations with EU guidelines, the market still holds certain drawbacks for companies looking to enter. The Croatian pharmaceutical market is in itself not overly high in value compared with many of its CEE counterparts, with per capita spending calculated to have reached a mere US$178 in 2008. Through to 2013 BMI forecasts compound growth rate (CAGR) for drug expenditure in Croatia will be 5.76% in local currency terms, reflecting a stable level of expansion, albeit below many of the emerging CEE markets.

Legislative improvements and future EU accession should prove a great attraction to pharmaceutical companies in future; however, there are still some potential drawbacks for the Croatian system, particularly in terms of a preference for local generics manufacturers. While budget restraints have limited widespread access to modern treatments, a steady stream of patented pharmaceuticals have been made available for reimbursement. The most recent additions to this list include GlaxoSmithKline (GSK)'s non-small lung cancer treatment Tarceva (erlotinib) and Pfizer's kidney cancer drug Sutent (sunitinib). Nevertheless, as a result of the implementation of tendering systems for medicines, as part of recent procurements the HZZO has saved close to US$67mn. Drugmakers have been forced to cut prices by an average of 12% in order to remain providers for drugs on the reimbursement list, with patented drugmakers having to make the largest concessions.

For 2009 the Ministry of Health has increased its budget for drugs to HRK3.1bn, which should provide a boost to prescription sales, reinforcing our view that the prescription market will remain resilient to the economic downturn. However, we are slightly less optimistic for the over-the-counter (OTC) market, which is likely to witness some downturn as a result of a contraction in spending, which may further result in reductions in spending on less essential medicines.

Over the longer term, however, it is our view that OTCs will continue to prosper at the expense of the prescription market share. The expansion of the number of outlets where OTC medicines are available, combined with a general increase in self-medication should continue to drive growth in the sector.

Meanwhile advertising - which is permitted in all major forms for OTCs - should help create brand value for high potential products.

Content

Executive Summary
Croatia Pharmaceuticals Industry SWOT
Croatia Political SWOT
Croatia Economic SWOT
Croatia Business Environment SWOT
Pharmaceutical Business Environment Ratings
- Table: Regional Pharma Business Environment Ratings
Limits Of Potential Returns
Risks To Realisation Of Returns
Croatia - Market Summary
Regulatory Regime
Intellectual Property Regime
Pricing Regime
Reimbursement Regime
Recent Pricing And Reimbursement Developments
OTC Regulations
Industry Trends And Developments
Epidemiology
- Table: Disease Burden In CEE
Healthcare Provision
Healthcare Expenditure
Healthcare Debts
Healthcare Reform
Domestic Pharmaceutical Industry
Domestic Company Activity
Foreign Company Activity
- Table: Lukaps' Time Line
Pharmaceutical Retail
Research And Development Sector
Clinical Trials
Medical Devices
Industry Forecast Scenario
Overall Market Forecast
- Table: Croatia - Drug Expenditure Indicators, Historical Data and Forecasts
Key Growth Factors - Industry
- Table: Croatia - Health Expenditure Indicators, Historical Data and Forecasts
Key Growth Factors - Macroeconomic
- Table: Croatia - Economic Activity, 2005-2013
Prescription Market Forecast
- Table: Croatia - Prescription Market Indicators, Historical Data and Forecasts (US$mn unless otherwise stated)
Patented Market Forecast
- Table: Croatia - Patented Market Indicators, Historical Data and Forecasts
Generics Market Forecast
- Table: Croatia - Generics Market Indicators, Historical Data and Forecasts
OTC Market Forecast
- Table: Croatia - OTC Market Indicators, Historical Data and Forecasts (US$mn unless otherwise stated)
Export/Import Forecasts
- Table: Croatia - Pharmaceutical Trade Indicators, Historical Data and Forecasts (US$mn)
Other Healthcare Forecasts
- Table: Croatia - Other Healthcare Indicators, Historical Data and Forecasts
Key Risks To BMI's Forecast Scenario
Competitive Landscape
Company Monitor
International Company Profiles
GlaxoSmithKline
Pfizer
Sanofi-Aventis
Novartis
Merck & Co
Krka
Indigenous Company Profiles
Pliva
Belupo
Country Snapshot: Croatia Demographic Data
Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
- Table: Education, 2000-2003
- Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 1999-2004
- Table: Consumer Expenditure, 2000-2010 (US$)
- Table: Average Annual Wages, 2000-2010
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