Greece Pharmaceuticals and Healthcare Report Q3 2009

Greece's uncontrolled growth in drug expenditure, which increased by 59% between 2004 and 2008, has led the country to rank among the highest per capita spenders in Europe. While a proportion of this figure is likely attributable to the country's parallel export market, cost effective use of health funds must remain a key focus for the government. BMI calculates that the Greek drug market reached a value of EUR6.07bn (US$8.43bn) in 2008. However, growth looks set to drop off over the forecast period with a compound annual growth rate (CAGR) of 8.25% in local currency terms through to 2013.

The Minister of Health Dimitris Avramopoulos recently announced a number of reforms to the health system, designed to constrain pharmaceutical expenditure. In January 2009, a new procurement system was implemented. The newly created Health Procurement Committee (HPC) will conduct all tenders for public health units, reducing bureaucracy in the system. The Greek Ministry of Health is expecting that the HPC will help save EUR500mn per year. Indeed, as a result of its stronger bargaining position, the HPC has already agreed contracts for orthopaedic supplies that are 30% lower than usual prices.

Meanwhile, the government is also looking to implement a 3% rebate on retail prices of prescribed pharmaceuticals, to be reimbursed by drug companies. This extra funding will be ploughed into the social security system. The health authorities calculate that this will generate EUR100mn in savings, money that will be spent upgrading public health institutions.

In a highly positive move for the health system, repayments of the high levels of debt owed by Greek hospitals to suppliers and pharmaceutical companies should begin over the course of Q209. On March 14, through a system of government guarantees and certification of invoices, the Postal Savings Bank began the process of repaying the EUR5.2bn (US$7.0bn) owed to the industry. BMI welcomes the move, although we note that without the implementation of more efficient prescribing regimes, more rational use of medicines and more transparent procurement procedures, debt may continue to accumulate. EUR1.8bn (US$2.4bn) will be released initially, beginning with repayments of the oldest debts from 2005 and 2006.

The remainder of the debt is due to be paid back by late 2009 or early 2010.

Greece remains in first place in BMI's Q309 Pharmaceutical and Healthcare Business Environment Ranking for Central and Eastern Europe (CEE), comprising of the 20 regional markets surveyed. The country's pharmaceutical market scores 63.2, well ahead of any other markets in the region, due to its strong growth and advanced intellectual property regime.

• Executive Summary
• Greece Pharmaceuticals And Healthcare Industry SWOT
• Greece Political SWOT
• Greece Economic SWOT
• Greece Business Environment SWOT
• Pharmaceutical Business Environment Rating
  • Table: Central And Eastern Europe Pharmaceuticals Business Environment Ratings
• Limits Of Potential Returns
• Risks To Realisation Of Returns
• Greece - Market Summary
• Regulatory Regime
• Intellectual Property Regime
• Pricing Regime
  • Table: Pharmaceutical Pricing In Greece
• Reimbursement Regime
• Parallel Trade
• Industry Developments
• Epidemiology
  • Table: Disease Burden In CEE
• Healthcare System
• Secondary Care
• Recent Healthcare Provision Developments
• Healthcare Expenditure
• Healthcare Reforms
• Research and Development
• Pharmaceutical Industry
• Wholesale And Retail Sectors
• Recent Pharmaceutical Industry Developments
• Medical Devices
• Industry Forecast Scenario
• Overall Market Forecast
  • Table: Greece - Drug Expenditure Indicators, 2004-2013 (EURmn unless otherwise stated)
• Key Growth Factors - Industry
  • Table: Greece - Health Expenditure Indicators, 2004-2013
• Key Growth Factors - Macroeconomic
  • Table: Greece - Economic Activity, 2005-2013
• Prescription Market Forecast
  • Table: Greece - Prescription Market Indicators, 2004-2013 (EURmn unless otherwise stated)
• OTC Market Forecast
  • Table: Greece - OTC Drugs Market Indicators, 2004-2013
• Patented Market Forecast
  • Table: Greece - Patented Drugs Market Indicators, 2004-2013
• Generic Drug Market Forecast
  • Table: Greece - Generics Market Indicators, 2004-2013
• Export/Import Forecast
  • Table: Greece - Pharmaceuticals Exports And Imports Indicators, 2004-2013 (US$mn)
• Other Healthcare Data Forecasts
  • Table: Greece - Other Healthcare Data Forecasts, 2004-2013
• Key Risks To BMI Forecasts
• Competitive Landscape
  • Table: Top 10 Pharmaceutical Companies In Greece By Sales, 2006
• Company Monitor
• Multinational Company Profiles
• GlaxoSmithKline
• Pfizer
• Novartis
• Sanofi-Aventis
• Merck & Co
• Abbott Laboratories
• Indigenous Company Profiles
• Vianex
• Lavipharm
• Gerolymatos SA
• Genesis Pharma
• Genepharm
• Pharmathen Pharmaceuticals
• Kleva
• Alapis Pharma
• 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