Now Available: Bulgaria Pharmaceuticals & Healthcare Report Q4 2012

Recently published research from Business Monitor International, "Bulgaria Pharmaceuticals & Healthcare Report Q4 2012", is now available at Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 25 October 2012

BMI View: The Commission on Protection of Competition (CPC)'s criticism of the National Health Insurance Fund (NHIF)'s pricing rules is unlikely to discourage the fund from pursuing price reductions for medicines. As BMI has been highlighting since February, Bulgarian drug prices will be under considerable pressure in 2012 and 2013 as the strongly politically supported new minister of health and head of and the NHIF implement and plan for more aggressive mechanisms for cutting drug prices.

Headline Expenditure Projections

- Pharmaceuticals: BGN2.10bn (US$1.49bn) in 2011 to BGN2.23bn (US$1.44bn) in 2012; +6.1% in local currency terms and -3.3% in US dollar terms.
- Healthcare: BGN5.12bn (US$3.64bn) in 2011 to BGN5.22bn (US$3.38bn) in 2012; +1.9% in local currency terms and -7.1% in US dollar terms.
- Medical Devices: BGN281mn (US$200mn) in 2011 to BGN285mn (US$185mn) in 2012; +1.7% in local currency terms and -7.4% in US dollar terms.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/464441_bulgaria_pharmaceuticals_healthcare_report_q4.aspx) (http://www.fastmr.com/prod/464441_bulgaria_pharmaceuticals_healthcare_report_q4.aspx)

Risk/Reward Ratings: Bulgaria is ninth out of the 20 markets surveyed in the region, with the country's score standing at 52 out of 100. The score takes into account the challenges for drugmakers operating in Bulgaria such as the price pressure on drugs, in addition to positive factors such as the increasing per capita consumption of medicines. .
Key Trends And Developments

- In August 2012, the government's proposal to introduce a ceiling on the cost of generic drugs reimbursed by the state of 65% of the price of the innovative drug attracted strong opposition from the Bulgarian Generic Pharmaceutical Manufacturers' Association (BGPharmA). The association, which comprises 18 Bulgarian and international generic drug companies, fears this measure will allow Rx medicine manufacturers to drive their generic drug competitors out of the market. BGPharmA said Rx medicine manufacturers will significantly reduce the prices of original drugs just before the expiry of their patents. In such a scenario, generic drugs would be available at prices lower than their cost price.
- The salaries of medical staff in Bulgaria will increase after they signed a collective labour contract, said Minister of Health Desislava Atanasova in July 2012. Salaries will increase by about 20% on an average, with the biggest hike being for new nurses. Healthcare employees working night shifts will also benefit a lot from the salary hike, said Atanasova.

BMI Economic View: A more pronounced weakness in external demand for Bulgarian exports and a larger concomitant slowdown in domestic demand, as export-intensive industrial activity slows, mean we have revised down our 2012 and 2013 real GDP growth forecasts to -0.1% and 1.6% respectively, from 0.6% and 1.9%. The domestic banking sector's exposure to peripheral eurozone banks will restrict credit growth and continues to pose major downside risks to economic growth.

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