Latvia Pharmaceuticals & Healthcare Report

Published 20 May 2015

  • 108 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Latvia Pharmaceuticals & Healthcare Report

BMI View: Latvia's pharmaceutical market offers stable growth, at least in local currency terms, although the country will continue to present a modest opportunity to larger multinational companies on account of its relatively small market size. Meanwhile, tensions between Ukraine and Russia are creating challenges for local manufacturers that have focused on exports to Russia and the Commonwealth of Independent States (CIS) region .

Headline Expenditure Projections

  • Pharmaceuticals: EUR313mn (USD419mn) in 2014 to EUR325mn (USD358mn) in 2015; +4.0% in local currency terms and -14.6% in US dollar terms. Forecast revised upwards slightly from previous quarter due to slightly upgraded on stability of health insurers revenues.

  • Healthcare: EUR970mn (USD1.30bn) in 2014 to EUR1.01bn (USD1.11bn) in 2015; +4.0% in local currency terms and -14.7% in US dollar terms. Forecast broadly unchanged on previous quarter.

Risk/Reward Index: Latvia is ranked 14th out of the 20 countries surveyed in the Central and Eastern Europe region in Q3 2015. Its position in the rankings has improved from 16th in our assessment of the previous quarter. Latvia's overall score also improved to 47.6 for Q3 2015 from 48.8 in the previous quarter. Latvia's score remains below the regional average of 49.5, indicating the country's challenging business environment, particularly in terms of potential industry rewards. Consequently, direct multinational operations are limited and domestic companies, such as Grindeks, have looked abroad for growth opportunities.

Key Trends And Developments

  • Latvia's pharmaceutical sales declined 9% year-on-year to EUR135mn (USD142.3mn) in 2014, according to LETA, citing the State Agency of Medicines' data. Exports accounted for 90% of the total market, while the remaining 10% of products were sold on the domestic market. The amount of drugs sold in the local market fell 8% in 2014 compared with 2013, while exports declined 3%.

  • Latvian drugmaker Grindeks...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
14
Pharmaceutical Market Forecast
14
Table: Pharmaceutical Sales, Historical Data And Forecasts (Latvia 2011-2019)
15
Healthcare Market Forecast
16
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Latvia 2011-2019)
17
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Latvia 2011-2019)
18
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Latvia 2011-2019)
18
Prescription Drug Market Forecast
18
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Latvia 2011-2019)
20
Patented Drug Market Forecast
21
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Latvia 2011-2019)
22
Generic Drug Market Forecast
23
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Latvia 2011-2019)
24
OTC Drug Market Forecast
25
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Latvia 2011-2019)
26
Pharmaceutical Trade Forecast
27
Table: Pharmaceutical Trade Data And Forecasts (Latvia 2013-2019)
28
Table: Pharmaceutical Trade Data And Forecasts local currency (Latvia 2013-2019)
29
Key Risks To BMI's Forecast Scenario
30
Macroeconomic Forecasts
31
Economic Analysis
31
Macro Outlook
31
Real GDP By Expenditure Breakdown
32
Risks To Outlook
34
Table: GDP By Expenditure (Latvia 2012-2019)
34
Industry Risk Reward Ratings
36
Central And Eastern Europe Risk/Reward Index
36
Latvia Risk/Reward Index
42
Rewards
42
Risks
42
Market Overview
44
Industry Trends And Developments
46
Epidemiology
46
Table: Leading Causes of Death, 1990-2010
46
Table: New Cases of Cancer, 2004-2010
48
Table: Cumulative Reported Cases of HIV and AIDS, 2000-2010
50
Healthcare Sector
51
Healthcare Sector Funding
52
Healthcare Provision
53
Table: Healthcare Resources (Latvia 2009-2014)
53
Table: Hospitals & Beds, 2006-2010
53
Table: Hospital Beds by Specialty, 2004-2010
54
Table: Healthcare Personnel (Latvia 2009-2014)
55
Table: Healthcare Activity (Latvia 2009-2014)
56
Research & Development
56
Biotechnology
57
Clinical Trials
59
Regulatory Development
60
Regional Collaboration
61
Intellectual Property Developments
62
Pricing Regime
62
Reimbursement Regime
65
Competitive Landscape
66
Research-Based Industry
66
Table: Licences Issued To Companies Engaged In Pharmaceutical Manufacturing And Distribution, 2007-2011
66
Table: Medicines Consumption According To Marketing Authorisation Holders (turnover in LVL)
67
Generic Drugmakers
68
Pharmaceutical Industry Developments
68
Pharmaceutical Distribution
69
Table: Wholesale Mark-Up Scheme For Reimbursable Pharmaceuticals, 2008
70
Table: Wholesalers Market Share, 2010 (%)
71
Pharmaceutical Retail Sector
72
Table: Pharmacy Mark-Up Scheme For Reimbursable Pharmaceuticals, 2008
72
Table: Licences Issued To Pharmacies
74
Company Profile
76
Grindeks
76
Olainfarm
81
Pfizer
85
GlaxoSmithKline
87
Sanofi
90
Novartis
92
Merck & Co
94
Demographic Forecast
96
Table: Population Headline Indicators (Latvia 1990-2025)
97
Table: Key Population Ratios (Latvia 1990-2025)
97
Table: Urban/Rural Population & Life Expectancy (Latvia 1990-2025)
98
Table: Population By Age Group (Latvia 1990-2025)
98
Table: Population By Age Group % (Latvia 1990-2025)
99
Glossary
101
Methodology
103
Pharmaceutical Expenditure Forecast Model
103
Healthcare Expenditure Forecast Model
103
Notes On Methodology
104
Risk/Reward Index Methodology
105
Index Overview
106
Table: Pharmaceutical Risk/Reward Index Indicators
106
Indicator Weightings
107

The Latvia Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Latvia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Latvia pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market forecasts for Latvia, to test other views - a key input for successful budgeting and strategic business planning in the Latvian pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Latvian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Latvia.
  • Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.

Coverage

BMI Industry View

An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc