Central and Eastern European (CEE) Developing Markets for Pharmaceuticals, 2006-2011

1. Executive Summary: Developing Markets for Pharmaceuticals, 2006-2011
2. The Global Pharmaceutical Industry Faces Significant Challenges – Will Expansion into Developing Markets Prove to Be the Answer?
2.1 The World Pharmaceutical Market Continues to Grow at a Moderate Rate
2.2 The Principal Markets Are the US, Japan and Leading EU Economies - But Leading Developing Nations Are Narrowing the Gap in Pharmaceutical Revenues
2.3 China is the Ninth Largest World Pharmaceutical Market
2.4 North America, Europe and Japan Continue to Dominate the World Pharmaceutical Market, But Sales in the Developing Markets Are Increasing More Rapidly
2.5 High Growth in the Developing Markets
2.6 China is a Most Exciting Prospect for the Pharmaceutical Industry
2.7 Latin America Exhibits Great Promise for Growth of Pharmaceutical Revenues
2.8 WTO Agreements Affect Pharmaceutical Developments In Emerging Markets
2.9 The Continuing Success of the Pharmaceutical Industry is Dependent Upon Important Drivers and Restraints
2.10 Pharmaceutical Companies Will Jostle Vigorously for Position in Developing Markets
2.11The Pharmaceutical Sector Is Gradually Changing Its Strategic Focus to Overcome Challenges in the Market
2.12 Sales of Generic Products Continue to Encroach Upon the Market for Branded Drugs
2.13 Patent Protection Strategies Form a Cornerstone of Lifecycle Management
2.14 Is Innovation Declining in the Pharmaceutical Industry?
2.15 There Are Strong Forces Acting on Pharmaceutical Pricing In Leading Markets
2.15.1 The US Branded Market Faces Significant Challenges From Generics and Parallel Trade
2.15.2 Mandatory Price Reductions in Europe Continue to Harass the Pharmaceutical Industry
2.15.3 Governmental Price Controls Are an Established Part of the Japanese Pharmaceutical Market
2.15.4 It Is Possible That Mandatory Cost-Controls in Germany Will Serve As A Precedent For Wider Governmental Controlling of Prices
2.15.5 Reducing Efficiencies in R&D Result in Concerns Over Thinning Pipelines
2.16 Maximising the Impact of Product Launches Yields Commercial Advantages
2.17 Strong Branding is Vital - Both in Established and Emerging Markets
2.18 Expansion Into Developing Countries Will Help to Reinvigorate The Pharmaceutical Industry from 2006-2011
3. The Russian Pharmaceutical Market
3.1 The Russian Pharmaceutical Market Will Expand to $7.9bn in 2011
3.2 Drivers of the Russian Pharmaceutical Market
3.3 Potential for Growth In the Russian Market Is Exciting, But Poverty and Lack of Developments Remain Serious Hurdles
3.4 Rapid Development of The Post-Communist Russian Economy Has Led to Economic Instability and Widespread Poverty
3.5 The Russian Economy Is Growing Steadily, With an Expanding Market for Pharmaceutical Products
3.6 While Healthcare in Russia is Mostly Provided by the State, There is a Growing Market for Privately-Funded Healthcare
3.7 Retail Prescription Sales Drive the Russian Pharmaceutical Market
3.8 The Highest Revenue-Generating Companies in the Russian Prescription Drug Market Are International Companies
3.9 The Ministry of Health Regulates Pharmaceuticals via a Complex System
3.9.1 Several Mechanisms Regulate Drug Prices
3.10 Generic Products Predominate in the Highly Competitive Russian Pharmaceutical Market
3.10.1 Ranbaxy May Acquire Leading Russian Generics Company Akrikhin
3.11 Counterfeit Pharmaceuticals Inundate the Russian Market
3.12 The Russian Market for Pharmaceuticals: Conclusions
4. Developing Pharmaceutical Markets in Eastern and Central Europe
4.1 Pharmaceutical Markets in Eastern and Central Europe (CEE) will Develop Strongly as Governments Attempt to Close the Gaps Between East and West
4.2 Developing Central and Eastern European Pharmaceutical Markets Have Many Advantages
4.3 As In Other Developing Regions, Widespread Poverty Remains A Serious Limiting Factor
4.4 Funding Significant Improvements in Healthcare Will Be a Challenge in Developing CEE Nations
4.4.1 Economic Growth in the CEE Region is Strong With Further Economic Benefits Expected
4.4.2 Russia Has the Strongest Fiscal State in the Region, But the New EU States Have Also Benefited
4.4.3 Improving Healthcare Provision Remain a Priority for CEE Governments
4.4.4 Accession to the EU Will Benefit Some States But Increase Disparities in Healthcare Provision in the Region
4.4.5 EU Accession Will Make the Environment for Generics Manufacturers More Difficult But Should Benefit Sales of Branded Pharmaceuticals
4.5 Improving Healthcare in Central and Eastern Europe Will Constitute Both a Great Challenge and Opportunity for Governments and the Pharmaceutical Industry
4.6 The Pharmaceutical Market in Poland
4.7 The Pharmaceutical Market in Hungary
4.8 The Pharmaceutical Market in the Czech Republic
4.9 Overview of Developing Pharmaceutical Markets in Central and Eastern Europe
5. Conclusions
5.1 China Will Produce the Largest Revenues of All the Developing Pharmaceutical Markets As Well As the Highest Growth Rate
5.2 Overall Growth of the Leading Developing Markets from 2005-2011 Will Be More than Twice that of the Global Pharmaceutical Market
5.3 The Leading Developing Markets Combined Will Generate More Than a Sixth of Global Pharmaceutical Revenues in 2011
5.4 The Main Drivers of Developing Markets Will Be Increasing Prosperity and High Un-met Needs for Modern Treatments
5.5 The Main Restraint to Growth Will Be Continuing Poverty in the Developing World

List of Tables
Table 2.1 Revenue Generation ($bn) by the World Pharmaceutical Industry, 1999-2005
Table 2.2 Forecast Revenue Generation ($bn) by the World Pharmaceutical Market, 2005-2011
Table 2.3 Top 20 Ranking Nations in the Global Pharmaceutical Market, 2005
Table 2.4 How the Top 10 Markets Compared With The Rest of the World, 2005
Table 2.5 World Pharmaceutical Revenues ($bn) by Region, 2005
Table 2.6 Revenues ($bn), Growth (%) and Market Share (%) for Leading Developing Markets, 2005
Table 2.7 Combined Revenues ($bn), Growth (%) and Market Share (%) for Leading Developing Markets by Region, 2005
Table 2.8 A SWOT Analysis for Developing Pharmaceutical Markets, 2006-2011
Table 2.9 The 10 Most Populous Countries – 2005 and 2030 Compared
Table 3.1 Pharmaceutical Revenues ($bn) for Russia, 2005-2011
Table 3.2 Russia: Fundamental Demographics and Healthcare Economics
Table 4.1 Revenues ($bn) for Leading Markets in Central and Eastern Europe, 2005-2011
Table 4.2 Pharmaceutical Revenues ($bn) for Poland, 2005-2011
Table 4.3 Poland: Fundamental Demographics and Healthcare Economics
Table 4.4 Pharmaceutical Revenues ($bn) for Hungary, 2005-2011
Table 4.5 Hungary: Fundamental Demographics and Healthcare Economics
Table 4.6 Pharmaceutical Revenues ($bn) for the Czech Republic, 2005-2011
Table 4.7 Czech Republic: Fundamental Demographics and Healthcare Economics
Table 5.1 The Leading Developing Markets Ranked in Order of Potential Revenue Generation ($bn), 2011
Table 5.2 Developing Markets Ranked by Growth Rate (CAGR %), 2005-2011
Table 5.3 Revenues ($bn) for Leading Developing Markets by Region, 2005-2011
Table 5.4 Share (%) of the World Market by Developing Region, 2005-2011

List of Figures
Figure 2.1 Revenue Generation ($bn) by the World Pharmaceutical Industry, 1999-2005
Figure 2.2 Forecast Revenue Generation ($bn) by the World Pharmaceutical Market, 2005-2011
Figure 2.3 World Pharmaceutical Revenues ($bn) by Region, 2005
Figure 2.4 World Market Share (%) by Region, 2005
Figure 2.5 Growth Rates (%) from Previous Year by Region, 2005
Figure 2.6 The Increasing Average Cost ($m) of NME Development, 1976-2005
Figure 3.1 Pharmaceutical Revenues ($bn) for Russia, 2005-2011
Figure 3.2 World Market Share (%) for Russia – 2005 and 2011 Compared
Figure 3.3 A Break-down (%) of the Russian Prescription Drug Market by Type of Sales ($m), 2005
Figure 3.4 Leading Companies in the Russian Retail Pharmaceutical Market ($m), 2005
Figure 3.5 Leading Companies in the Russian Hospital Pharmaceutical Market ($m), 2005
Figure 3.6 Leading Russian Pharmaceutical Companies ($m), 2005
Figure 3.7 Leading Therapeutic Areas ($m) In the Russian Pharmaceutical Market, 2005
Figure 4.1 Revenues ($bn) for Leading Markets in Central and Eastern Europe, 2005-2011
Figure 4.2 Combined Revenues ($bn) for Leading Markets in Central and Eastern Europe, 2005-2011
Figure 4.3 Growth Rates (% CAGR) for the CEE Markets, 2005-2011
Figure 4.4 Pharmaceutical Revenues ($bn) for Poland, 2005-2011
Figure 4.5 World Market Share (%) for Poland – 2005 and 2011 Compared
Figure 4.6 Pharmaceutical Revenues ($bn) for Hungary, 2005-2011
Figure 4.7 World Market Share (%) for Hungary – 2005 and 2011 Compared
Figure 4.8 Pharmaceutical Revenues ($bn) for the Czech Republic, 2005-2011
Figure 4.9 World Market Share (%) for the Czech Republic – 2005 and 2011 Compared
Figure 5.1 Revenues ($bn) for Leading Developing Markets by Region, 2005-2011
Figure 5.2 Revenues ($bn) for Leading Markets of Developing Regions Combined, 2005-2011
Figure 5.3 Share (%) of the World Market by Developing Region, 2005-2011
Figure 5.4 Share (%) of the World Market by Developing Regions Combined, 2005-2011