AS THE BUDGET LACKS RESOURCES IN 2009, Drugstores could run into trouble as the state no longer subsidizes drugs

COSMINA CAPALĂU

Given the current financial context, the effects of the world crisis in Romania are hard to forecast. Experts in the pharma sector claim that, despite harder economic conditions, the drug sector will still see growth in 2009.

"The crisis will Most likely reach its peak in 2009, and everyone will try to come up with solutions to remain profitable. We estimate the pharmaceutical market will grow by approximately 10%, which is nothing out of the ordinary as the average drug use in Romania is below that of European countries. Most likely this growth rate will remain unchanged in 2010", said Mrs. Isabelle Iacob, General Manager of "Help Net" drugstore chain.

Mr. Robert Popescu, CEO of "A&D Pharma", a company that owns the "Sensiblu" drugstore chain, considers that "in 2009, drug sales will stagnate in Euros, and may see single digit growth, calculated in lei".

Drugstores may find themselves unable to get their money back for subsidized drugs sold

"Help Net" representative claims that "the largest issue in 2009 is the fact that there is no limit on subsidized drugs prescriptions, (for drugstores, as well as doctors), and the budget has limited resources and we could find ourselves unable to get our money back for drugs sold based on subsidized prescriptions, just like it happened in 2002, because the budget is pretty much stretched thin. This is a real issue and we are waiting for the authorities to step up, in this case", Mrs. Iacob said.

Mr. Popescu has a similar opinion, claiming that the slowdown of the drug market is directly affected by the price cut in the beginning of April, by the elimination of the limit on subsidized drugs, as well as the possible lack of funds the National Healthcare System (CNAS) could run into in the second half of 2009.

The General Manager of "Help Net" predicts several other trends for the pharma market, including a settling of prices and the consolidation of the distribution market. Another trend that is to be expected is "the growing importance of generic brand drugs, as the European Union has over 20 countries that allow substituting brand prescriptions with generic drugs", said Mrs. Iacob.

The spokesperson for "A&D Pharma" said that for this year, "our best-case scenario estimates that the current sales trend will continue, and the National Healthcare System will have enough funds to bear the real level of drug consumption. Our pessimistic scenario is that the National Healthcare System will run out of funds and we are going to see a financial crisis in the healthcare system, which will negatively affect the market, as well as consumer ability to access medication", said Mr. Popescu.