BMI's Executive Summary

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While larger than its Baltic counterparts in terms of value, the Lithuanian pharmaceutical market remains one of the smallest in the Central and Eastern European (CEE) region. While its' recent growth has been strong – 14% year-on-year (y-o-y) for the three months February through April 2007 – according to distributor Tamro, funding pressures and out-of-pocket spending on drugs, limited by patient purchasing power leads BMI to forecasts for the coming five years annual growth at single-digit figures. Market growth is also contingent on the country's fractious parliament and current weak government managing to steward the fast-growing economy or fresh elections yielding more workable arrangements before the next round of scheduled parliament polls in October 2008.

In the meantime, the country's creaking public services – in particular healthcare – require urgent attention despite the attempts of successive governments to develop a modern primary sector, with doctors providing a gatekeeper function to specialists. While the president appears committed to reducing corruption, power struggles and appeals to populism are blamed for preventing movement on badly needed economic and social reforms. However, although the fractious political scene threatens to derail the much-needed reforms, the new multiparty governing coalition has put forward a platform based on investment in social services.

In the adjusted BMI 's Business Environment Rankings for the 15 major markets of Central & Eastern Europe (CEE), Lithuania is ranked joint twelfth, alongside Croatia. While Lithuania's strong economic growth and surging levels of consumer spending are stimulating pharmaceutical market growth, economic and political risks remain a cause for concern. Lithuania was expected to fully harmonise national with EU pharmaceutical legislation by the end of 2007, which should further facilitate market entry for foreign players.

The country's drug manufacturing sector is small and export-oriented, given the constraints of the local market. Given the trend of industry consolidation following the European Union (EU) membership, even the larger players in the country could potentially emerge as take-over targets for key global players in the medium to longer term. Multinationals will continue to supply the bulk of patented medicines through imports, although no plans are being made for establishing local manufacturing facilities. The strong local demand for generics is fuelling the expansion of large CEE players in the Lithuanian market.

Contents

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Chapter 1 - Executive Summary

Lithuania Pharmaceuticals & Healthcare Industry SWOT

Chapter 2 - 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

Chapter 3 - Lithuania: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Developments

Pricing & Reimbursement Issues

Healthcare Sector Developments

Chapter 5 - 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

Chapter 6 - Competitive Landscape

Table: Leading Pharmaceutical Manufacturers in Lithuania

Chapter 7 - Company Profiles

Valentis

Sanitas

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 9 - Appendix: Regional Demographic Data

Wages (ave labour force per annum), US$ PPP

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 10 - 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

Competitive Landscape for Europe Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of European Pharmaceutical & Healthcare Sources

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BMI's Pharmaceuticals & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceutical & healthcare industry associations, chambers of commerce and company reports. Information sources include: