|
|
Home > Healthcare > Pharmaceutical > General Pharmaceutical
Belarus Pharmaceuticals and Healthcare Report Q4 2009
|
|
A brief recession and the devaluation of the local currency have demonstrated that Belarus has not beenable to escape the global economic crisis, although sheer lack of integration into the global financialsystem has done much to blunt its impact. According to BMI, the country’s pharmaceutical sector isforecast to deliver a five-year compound annual growth rate (CAGR) of 6.47% through to 2013 in USdollar terms (10.75% in local currency terms), with total market value in final consumer prices set toreach US$869mn. At the same time, the market will not see US dollar growth return until 2011, when themarket is expected to resume its previous double-digit growth.
Relations with Russia remain central to overall strength of the Belarusian economy. After a damagingtrade row in July, President Alexander Lukashenko has been eager to push for the implementation of theCustoms Union between the two countries from January 2010, with Kazakhstan also committed to join.In terms of competitiveness, the devaluation of the Belarusian ruble helps domestic companies matchproduction costs in Russian and Kazakhstan. In addition, producers and companies in all three regionsface similar increases in active pharmaceutical ingredient (API) costs, as much of these are imported fromChina and denominated in dollars. The union is meant to also negotiate as a bloc for the three countries toenter the WTO, although membership for Belarus appears extremely unlikely in the near term.
The market remains under the influence of the pricing freeze agreed between producers and thegovernment in June. The move followed the 25% fall in the value of the ruble against the euro in late2008/early 2009. Companies are now required to obtain permission from the Ministry of Public Healthbefore raising prices, while wholesalers and retailers have to apply minimal mark-ups. Still, BMI seesreal prices continuing to move upwards as wholesalers and retailers seek to survive in difficult economicconditions.
Local producers must calculate how to balance the short-term impact of the recession with the threats andopportunities offered by the Customs Union if it becomes reality in a few months, which is by no meanscertain. Big producers such as Bebliopharm’s sales match the pace of market growth in recent years,large Russian producers in particular will be challenging many of their core product lines - although evenwith a Customs Union, few believe that the Belarusian government will remove non-tariff discrimination.
Thorny issues with Russia remain. In particular, the government has resisted applying rules givingRussian pharmaceutical firms equal access to state tenders. In July, the government introduced new rulesaimed to introduce preferential treatment for domestic producers, reversing liberalising measuresintroduced in April. Despite government rhetoric, liberalisation within the Customs Unit and integrationwithin the broader global pharmaceutical market look a long way off.
|
Similar Products
• United States Type 2 Diabetes Market
Published Nov 2009 by Intellent
• Company Financials: Bayer AG
Published Nov 2009 by Datamonitor
• Thailand Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
• Argentina Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
• Takeda Pipeline, Products, Performance, Potential
Published Nov 2009 by Espicom Healthcare Intelligence
• Poland Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
• Merck & Co. Performance, Products, Pipeline and Potential
Published Nov 2009 by Espicom Healthcare Intelligence
• Australia Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
• Nigeria Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
• Kenya Pharmaceuticals and Healthcare Report Q1 2010
Published Nov 2009 by Business Monitor International
|
|
|
|
0 items
