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Updated Growth Projections See Lithuania's Pharmaceuticals & Healthcare Market Reaching a Value of USD582m in 2010

Posted on: Monday, 25 June 2007, 09:05 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c60675) has announced the addition of Lithuania Pharmaceuticals & Healthcare Report Q4 2006 to their offering.

The Lithuania Pharmaceuticals & Healthcare Report provides independent forecasts and competitive intelligence on Lithuania's pharmaceuticals & healthcare industry.

Lithuania's pharmaceuticals market is estimated to reach a value of USD447m at consumer prices in 2006, up 10% year-on-year (y-o-y). Market growth has slowed, following 15% growth in 2005. The updated growth projections see the market reaching a value of USD582m in 2010, an annual growth rate of 7.2%, similar to the average growth rate for the CEE. Imports continue to dominate the market, representing up to 95% of the market. Statistics Lithuania reported that pharmaceutical imports reached a total of USD296m through August, growth of 14.7 y-o-y.

Continued growth will be driven by a mix of out-of-pocket spending and continuing reform in the country's troubled state healthcare sector. The government of Prime Minister Gediminas Kirkilas has pledged to clean up corruption, an issue that continues to mar the reputation of an otherwise liberalised and dynamic Baltic economy. Healthcare corruption brought down the country's previous government, and opinion surveys show that the healthcare system is the least trusted institution in the country. The healthcare sector received an 8.5% budget increase in the government's 2007 budget, although this amount appears insufficient to push through much-needed investment in facilities while absorbing sharp increases in the salaries of healthcare workers.

The local production sector remains small but dynamic and primarily export-oriented. Sanitas surprised many observers with its successful acquisition of Polish generic drug maker Jelfa. However, Sanitas was badly hit, in the short term at least, by a high-profile scandal, when a potentially fatal production error at Jelfa was discovered in November. It is still too soon to assess the full financial damage and the damage to its reputation, although it may lead to a substantial one-time loss. In the retail pharmacy sector, leading pharmacy chain Eurofarmacijos Vaistines announced that it planned to open about 30 pharmacies in the three Baltic States in 2007, as it saw sales increase 34% through 9M06, reaching LTL401m (USD139m).

Troubles in the state-run healthcare system continue to foster the development of private insurance and care. In the first transaction of its kind in the country, Swiss healthcare investment group Pro Hypocratus acquired Lithuania's largest private healthcare provider Kardiolita in December 2006. The cost of the transaction was not disclosed, but Kardiolita had turnover of around USD5m in 2005. The updated Business Environment Rankings for Central & Eastern Europe places Lithuania eighth overall out of the 14 major markets in the region, the same position as last quarter. Lithuania's market growth potential is strong, but systemic political and economic risks, though diminishing over the long-term, remain key barriers for investors.

Content Outline:

Executive Summary

Lithuania Pharmaceuticals & Healthcare Industry SWOT

Lithuania: Business Environment Ranking

Table: Central & Eastern Europe Pharmaceuticals Business Environment Ranking

Business Environment Ranking

Economics -- Long-Term Risk

Politics -- Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Lithuania: Market Summary

Regulatory Regime

Intellectual Property Developments

Pricing & Reimbursement Issues

Healthcare Sector Developments

Industry Forecast Scenario

Overall Market Forecast

Table: Lithuania Drug Market Forecast Indicator

Key Growth Factors -- Industry

Table: Lithuania Healthcare Expenditure Forecast Indicators

Key Growth Factors -- Macroeconomic

Table: Indicators Of Economic Activity

Prescription Market Forecast

Table: Lithuania Prescription Drug Market Forecast Indicators

OTC Market Forecast

Table: Lithuania OTC Market Forecast Indicators

Generics Market Forecast

Table: Lithuania Generics Market Forecast Indicators

Export/Import Forecasts

Table: Lithuania Pharmaceutical Export & Import Forecast Indicators

Other Healthcare Data Forecasts

Table: Other Healthcare Data Forecasts

Risks To BMI's Forecast Scenario

Competitive Landscape

Table: Leading Pharmaceutical Manufacturers in Lithuania

Company Profiles

Valentis

Sanitas

BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Appendix: Regional Demographic Data

Wages (ave labour force per annum), USD PPP

Population

Household Spending Per Capita, USD

Private Consumption Per Capita, USD PPP

Market Size, GDP, USDbn

Country Snapshot: Lithuania Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Year

Companies Mentioned:

- Sanitas

- Valentis

For more information visit http://www.researchandmarkets.com/reports/c60675

Source: Business Wire

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