This report covers the market developments in Q2/2014 and the data available as of August 2014.

Sales of pharmaceuticals rose by 5.7% y/y (4.9% y/y in EUR terms) to RON 3bn (EUR 679.8mn) in Q2/2014, returning to growth after having declined on an annual basis for three consecutive quarters. In volume terms, the market also rose by 3.2% y/y in Q2, recovering from the 4.2% y/y drop in Q1 and the 3.6% y/y decline Q4/2013.
The pharmaceutical sales during the 12 months ending Jun 2014 thus continued downwards on an annual comparison, after having recording the first y/y decline in over three years in the 12 months ending Mar 2014. The performance of the pharmaceutical market in the past 12 months reflects the underfinancing of the health system, yet the positive y/y performance in Q2 proves its resilience.

Prospects for the full-year pharma sales in 2014 remain cautious. Maket forecasts project 0.3% y/y decline in local currency of the pharma market in 2014, as the revised subsidised drug list is expected to be enforced this autumn, and, accordingly will not impact visibly the market performance in full year. The sales of pharmaceuticals are projected to return to annual growth in 2015 and have enough room for growth in the long run considering the aging population and a large, unaddressed disease burden.

Key points:

• Pharmaceutical sales return to annual growth after three consecutive quarters of decline
• Pharma market expected to decline marginally y/y in FY 2014, to return to growth in 2015
• Production of medicines shrinks 7% y/y in Jan-May 2014
• Major chains control nearly 20% of pharma retail market in Romania
• Health ministry might allow pharmacies to sell OTC medicines online
• GSK decides to close Europharm plant in Brasov, after failing to find buyer