This report covers the market developments in Q1/2015 and the data available as of May 2015.

The pharmaceutical sales performed above market expectations and increased at double-digit annual pace in Q1/2014 in RON and EUR terms, after having risen by 11.8% y/y in the previous quarter (up by 9.7% y/y in EUR terms). Sales of OTC drugs surged by 27.7% y/y to RON0.6bn, while the hospital segment amounted to RON0.4bn, up by 11.5% y/y.

In the 12 months ending March 2015, the pharmaceutical market value increased by 10% y/y to RON12.6bn. The Rx segment advanced by 7.4% y/y in RON terms, while the OTC and hospital sales increased by 20.6% y/y and 11.7% y/y respectively.

The performance of the Romanian pharmaceutical market is influenced by a broad variety of factors, among which the most important are related to regulatory measures and public spending. Accordingly, the announced medicine price cuts might drive downwards the pharmaceutical sales value this year, to minus 2.8% y/y in local currency terms, according to market data. In terms of actual demand, however, considering the aging population, there is enough room for growth. Our QuERi database forecasts show that the demand for treatment will continue increasing in 2015-2017.

Key points:
• Pharmaceutical sales rise y/y in EUR, RON terms in Q1/2015
• Medicine price cut expected to drive downwards pharma market value in 2015
• Pharmaceutical imports, exports decline in 2014
• Antibiotice Iasi seeks investors for building new production capacities
• Biofarm plans acquisition of local peer
• Polisano to sell 25% stake to investment fund for €30mn
• Dona pharmacy chain launches online store