Romania Pharmaceutical Report - Q4, 2013

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Romania Pharmaceutical Report - Q4, 2013

The report covers the market developments in Q4 2013 for Romania’s pharmaceutical sector. The report also summarizes corporate news for firms including Sanofi, GSK, Farmaceutica Remedia, and Farmexim, among others.

Pharmaceutical sales declined on an annual basis for the second consecutive quarter in Q4 2013, after in Q3 the market dropped in RON terms for the first time in the past seven years, according to our calculations based on available statistics. Pharmaceutical sales also dropped by 3.6% year on year in volume terms and as regards days of treatment.

The pharmaceutical market continued to be affected by the drawback of public support, which also resulted in further deterioration of medicine availability over the quarter. The decrease of medicine sales in H2 2013 affected the full-year market performance. The pharma market inched up 0.3% year on year in local currency and 1.1% year on year when expressed in EUR in 2013, but even though overall sales remained in the positive area, market performance deteriorated sharply compared to the 8.3% year on year rise recorded in 2012 and 12.4% year on year growth in 2011. Notably, in volume terms, pharmaceutical sales declined by 1.1% year on year in 2013, compared to 4.4% year on year growth recorded in 2012.

The OTC segment maintained good performance in Q4 and full year 2013, though the growth eased visibly to 6.5% year on year in 2013 from 12% in 2012 (in local currency). The segment continued to gain market share, reflecting the pharmaceutical companies’ rising interest in developing their OTC portfolios. OTCs accounted for 18.8% of total medicines sales value in Q4 2013 and 17.5% market share in full year 2013, versus 17.6% in Q4 2012 and respectively 16.5% market share in 2012.

Key Points:

• In corporate news, pharmaceutical company Sanofi Aventis estimates that exports reached 30% of the production volume in 2013, double the figure from 2012, and plans to further increase exports to reach 50% in the coming years.

• UK-based medicine producer GlaxoSmithKline (GSK) expects the expiration of the patent for the best-selling drug in its portfolio (Seretide) to reflect in a moderate decline of sales in 2014, below 10% year on year.

• Romanian pharmaceutical distributor Farmaceutica Remedia reported RON 240.6mn (EUR 54.4mn) sales revenues in 2013, up by 1.2% year on year.

• Pharmaceutical distributor Farmexim completed at the beginning of 2014 a EUR 16mn investment in a logistics center in Balotesti, Ilfov county. The logistics center covers over 15,000sqm and can store over 6,000 pellets.

• Pharmaceutical sales are expected to start picking up this year and record an average annual growth of 4.8% by 2018, according to market data.

• The growth rates forecasted for the coming years are below the expansion pace in the past, yet positive projections should in principle support investments in the sector.

Table of Contents

Contents
Executive Summary
1. Market Overview
1.1 Pharmaceutical sales drop y/y in EUR, RON terms in Q4/2013
1.2 Pharma market inches up 0.3% y/y to RON 11.7bn in 2013
1.3 … And is expected to pick up to 2.7% y/y in 2014
1.4 Roche tops pharma companies ranking in 2013
1.5 Pharmaceutical imports reach EUR 2.5bn in Jan-Nov 2013
1.6 Medicine production resumes annual growth in 2013

2. Producers
2.1 Antibiotice Iasi targets 6% y/y higher profit, plans EUR 6.7mn investments in 2014
2.2 Sanofi plans to further increase exports, launch 15 new products this year
2.3 GSK expects sales decline in 2014, but aims to return to growth in 2015
2.4 Biofarm’s revenues, profit rise at double-digit y/y pace in 2013
2.5 Gedeon Richter’s sales rise y/y in 2013, propped by distribution, retail arms
2.6 Terapia Ranbaxy reports higher domestic sales, stagnant exports in 2013

3. Distribution & Retail
3.1 Large pharmacy chains to continue expansion in 2014
3.2 Farmaceutica Remedia’s sales revenues rise 1.2% y/y, profit shrinks in 2013
3.3 Ropharma’s sales inch up 0.4% y/y in 2013
3.4 Farmexim completes EUR 16mn investment in logistics centre, targets 10% y/y turnover increase of retail arm
3.5 Dona pharmacy chain expands network in Cluj

Table 1 Pharma quarterly sales in 2010-2013 (RON mn, EUR mn, y/y, PPP)
Table 2 Pharma sales volume vs value in Q4/2012, Q4/2013 (y/y)
Table 3 Pharma sales volume vs value in 2012-2013 (y/y)
Table 4 Pharmaceutical sales value by distribution channel in 2007-2013 (annual, RON mn, EUR mn)
Table 5 Structure of pharma sales in 2012-2013 by main therapeutical groups (RON mn, % of market, y/y)
Table 6 Top 10 pharma companies in 12 months
Table 7 Farmaceutica Remedia S.A.- Selected financials in 2011-2013 (RON mn)
Table 8 Ropharma S.A.- Selected financials in 2012-2013 (RON mn, y/y)

Figure 1 Structure of pharma sales in volume terms in Q4/2013 vs Q4/2012 (% in total)
Figure 2 Structure of pharma sales in value terms in Q4/2013 vs Q4/2012 (% in total)
Figure 3 Pharma quarterly sales in 2006-2013 (EUR mn, PPP)
Figure 4 Pharma volume sales by main therapeutical groups in 2012-2013 (% of total)
Figure 5 Pharmaceutical sales in 2005-2013 (annual, EUR mn, y/y)
Figure 6 Pharmaceutical sales value in 2005-2013 (annual, RON mn, y/y)
Figure 7 Pharmaceutical sales in 2005-2018f (annual, RON bn, y/y)
Figure 8 Top 10 pharma companies by market share in Q4/2013 (RON mn, % of total)
Figure 9 Pharmaceutical products foreign trade in 2003-2013 (monthly, EUR mn)
Figure 10 Pharmaceutical manufacturing index in 2010-2013 (monthly, 2010=100, unadjusted)
Figure 11 Antibiotice S.A.- Selected financials in 2012-2013 (RON mn)
Figure 12 Number of pharmacies and drug stores in Romania in 2007-2012

Number of pages: 16
Release Date: Tue, 04 Mar 2014