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Healthcare: The pharma market in Romania will register a business record in 2018, estimated at 50 billion lei
The pharma market of Romania will register a business record in 2018, the appetite of the Romanians for drugs and treatments being stimulated by the advertisments in the media and by the crisis in the health system, the estimates going to the threshold of 50 billion lei,an analysis made by Keysfin shows.
In the attempt to find solutions to their health issues, the Romanians use drugstores most often, and this trend is clear in the financial data.According to the quoted analysis, which took into consideration the financial data of the companies which produce and distribute drugs, their business evolved significantly over the last years, from 37.92 billion lei in 2012 to 47.87 billion lei in 2017,the estimates for 2018 going towards 50 billion lei.
The increase of the prices of drugs due to the wave of inflation of this year will influence upwards the turnover in this sector, our estimates indicating approximately 49.77 billion lei. It is still possible that this sum be surpassed, the evolution of the weather with its effects influencing substantially this estimate,the analysts say.
The increase of the businesses was accompanied with significant evolution of the profitability. If in 2012 the companies in the pharma industry had a total profit of 1.65 billion lei and in 2017 it was 2.38 billion lei,in 2018 the experts estimate a level of 54% higher than the reference year 2012, of 2.53 billion lei.
According to the statistics, in Romania there were officially registered in 2016 158 producers of drugs and pharma products and over 6700 traders of wholesale and retail products.
According to the analysis,the big players on the market consolidated their business so that the top of the main players did not suffer significant alterations. The sector of production is led by Terapia with business of 567.98 million lei (2016),the company followed by the Iasi company Antibiotice (334.99 million lei) and Sandoz with 320.38 million lei. The ranking of the producers is completed by Labormed Pharma,Gedeon Richter Romania,Fiterman Pharma,Infomed Fluids and Biotehnos SA.
In the sector of retail,the top of investors is led by Sensiblu SRL with a turnover of 1.67 billion lei, followed by DONA with 902.69 million lei in 2016 and Help Net Farma with 549.90 million lei. The top of traders, according to the turnover,is completed by Catena Hygeia and Ropharma.
As regards the wholesale trade,the leader is Mediplus Exim with a turnover of 4 billion lei, followed by Farmexpert DCI (2.9 billion lei).
The KeysFin statistics show that,geographically, the biggest companies in the pharma sector work in Bucuresti (1,237) followed by Cluj (322),Arges (285)Bihor (279) Iasi (279)and Dolj (278 companies).
As a total, in Romania there were registered in 2016,6,905 companies in the production and distribution of drugs with over 65,000 employees.
The experts estimate this year the companies in the pharma commerce and will slow down the territorial spread, the geographical coverage at regional level and local level reaching a level considered optimal.
‘At present we have a consolidation of the market. Starting with 2012 and until now, the players in the pharma invested massively in the extension of the distribution networks and our analyses show that we reached a peak. 2018 is the year of consolidation. We will see, most probably, mergers and acquisitions and less new units’ the analysts say.
The rising trend is found at global level as well, the global market of the pharma products being estimated to grow with approximately 5% this year and surpass 800 billion dollars.
In Europe, Germany is the leader as regards the production of drugs. In the ranking there follow the companies in the UK, Switzerland, France, Sweden, Denmark.
According to the experts, the future of the pharma market is connected to the development of the companies of biotechnology, which develop new treatments, especially on the sector of immunology and oncology.