BMI's Executive Summary

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Slovakian pharmaceutical market remains one of the less attractive markets amongst its Central and Eastern European peers, primarily due to its small size and a sizeable healthcare debt, despite a relatively favourable business environment. However, the new left-leaning government, elected in 2006, has passed a basket of measures in an attempt to achieve a better financial balance, although some of the changes have been strongly opposed. Most recently, the government banned profit-making in the healthcare insurance sector, with the aim of freeing up more funds for patients' needs, but also disincentivising the companies in the sector by removing competition and essentially their reason for operating.

In terms of market segmentation, the generics market represents some 29 percent of the total by value. However, the new anti-Bolar (and thus anti-EU legislation) law threatens to delay the entry of copy products onto the market, to the detriment of the local as well as international generics players. In the meantime, the control of the local industry is increasingly passing to foreign hands. On a positive note, the improvement in the function of the national drugs authority and the elimination of consultation fees will provide incentives for companies wishing to invest in the market.

The new BMI's Business Environment Rankings for Q108 places Slovakia joint ninth out of the 15 Central and Eastern European (CEE) states surveyed. Slovakia is now ranked in the same position as Poland and Latvia, above Croatia, Lithuania, Ukraine and Serbia. However, Slovakia continues to trail behind the advanced regional markets such as Hungary as well as its most immediate neighbour, the Czech Republic. Some of the barriers to further market development are, regulatory infrastructure shortcomings, preferential treatment for the domestic industry as well as counterfeiting, although Slovakia was not listed in the PhRMA's 2006 watch list of countries.

Given the increased integration of the country into the EU, with the Euro adoption scheduled for 2009, the role of foreign companies and foreign-made pharmaceuticals is expected to become more prominent in the coming years. Despite strong international expansion of local players – most notably the local leader Zentiva (which is, however, now headquartered in the Czech Republic) - imports are expected to strengthen their position in the local market.

Contents

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Chapter 1 - Executive Summary

Industry SWOT Analysis

Slovakia Pharmaceuticals Industry SWOT

Slovakia Political SWOT

Slovakia Economic SWOT

Slovakia Business Environment SWOT

Chapter 2 - Business Environment Rankings

Central & Eastern European Region

Table: Central & Eastern Europe 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 - Slovakia: Market Summary

Chapter 4 - Regulatory Regime

Generics Legislation

Recent Regulatory Developments

Intellectual Property Regime

IP Deficiencies

Pricing And Reimbursement Issues

Chapter 5 - Industry Trends & Developments

Healthcare Sector

Health Status

Health Insurance

Healthcare Sector Strike

Healthcare Sector Reforms

Healthcare Funding Crisis

Pharmaceutical Industry

Research & Development

Company Developments

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Drug Market Indicators

Industry Forecast

Table: Health Expenditure Indicators

Key Growth Factors - Macroeconomic

Table: Growth And Output

Prescription Market Forecast

Table: Prescription Drug Market Indicators

OTC Market Forecast

Table: OTC Market Indicators

Generics And Branded Market Forecast

Table: Generics And Branded Market Indicators

Export/Import Forecasts

Table: Sectoral Trade Indicators

Other Healthcare Data Forecasts

Table: Other Healthcare Data Forecasts

Key Risks To BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Chapter 8 - Company Monitor: Multinationals

GlaxoSmithKline (GSK)

Pfizer

Novartis

Sanofi-Aventis

Merck & Co

Chapter 9 - Company Monitor: Indigenous Manufacturers

Imuna Pharma

Hoechst-Biotika

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

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: