Central and Eastern European healthcare markets show growth potential

Despite the global economic downturn, Central and Eastern European (CEE) countries such as Poland, the Czech Republic, Slovakia, Hungary, Bulgaria and Romania still represent an attractive healthcare market, according to research by Frost & Sullivan.

In its Overview of Pharmaceutical and Medical Devices Industry in Central and Eastern Europe, Frost & Sullivan finds that the pharmaceutical and medical devices market will grow on average at 6.9% and 7.4% respectively from 2009 to 2012. Bulgaria and Romania will be the fastest-growing markets, while the Czech Republic and Hungary will experience below-average growth.

"The Western European markets are saturated with marginal scope for growth," says Frost & Sullivan research analyst Vitaliy Lehkyy. "However, CEE countries still boast of an unmet demand for pharmaceuticals and medical devices, driven by the rising purchasing power of the population."

CEE pharmaceutical and medical devices markets are on average 1.5 to five times smaller in value terms per capita than those of Western Europe. The improving economic position of CEE countries is resulting in a better quality of life, higher life expectancy and a consequent demand for efficient healthcare services by the ageing population.

However, Frost & Sullivan warns that markets will be restrained by incoherent reforms of the healthcare system and volatile regulatory requirements.

"Compulsory fees for drug prescription in the Czech Republic and Hungary, a new pharmaceutical pricing scheme in Slovakia, and mandatory labelling of all medicaments in Cyrillic alphabet in Bulgaria, will adversely affect the market in the short-term," said Lehkyy. "These measures imply an additional cost pressure either on consumers or drug manufacturers and will have an adverse effect on the development of pharmaceutical markets in these countries."