BMI's Executive Summary

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Slovenia is one of the more advanced markets in the Central and Eastern European (CEE) region. Its long-term prospects are, however, hampered by a small population size (only around 2mn), its maturity, and certain shortcomings of its intellectual property (IP) regime pertaining to pharmaceuticals. On a positive note, the relatively wealthy population, high healthcare standards and high prices of branded generics will continue to provide support for a steady growth over the coming years. In addition, the country is required to align its market authorisation dossiers to European Union (EU) standards by the end of 2007, as required by the membership.

Prescription drugs will continue to account for the majority of the market by value, which are – at 90% of the total – higher than in other CEE countries. The situation is partly the result of over-prescribing and overuse of hospitals, although the need for healthcare and pharmaceutical cost containment will over time lead to the reduction in the share of prescription drugs, providing impetus for over-the-counter (OTC) market growth. On the other hand, the long tradition of generic pharmaceutical manufacturing, disadvantages facing foreign manufacturers and the high percentage of generics (many of which are highpriced branded generics) as a share of the total market (estimated at 33% in 2007) will continue to stimulate the growth in the generics sector.

In BMI's adjusted Business Environment Rankings, Slovenia occupies a position in the middle of the table which compares the 15 key regional markets in Central and Eastern Europe (CEE). Slovenia is tied with Russia in sixth place, just ahead of Romania. While the market size remains a major obstacle to future growth, on a positive side, the expansive private insurance coverage and established trade regimes with Western Europe (boosted by the recent entry into the eurozone) allow for good placement of novel drugs onto the market.

The bulk of Slovenia's domestic production, which has traditionally been dominated by Krka and Lek, is destined for export, given the small size of the home market. Domestic consumption is a fairly even mix of imported drugs and locally manufactured generics. Most major multinationals are present on the Slovenian market, although very few have a manufacturing presence, largely as a result of the country's inadequate IP laws, its small size and its proximity to Western Europe. The major exception is Novartis, with its generics subsidiary Sandoz present in Slovenia since its acquisition of Lek in late 2002.

Contents

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Chapter 1 - Executive Summary

Slovenia Pharmaceuticals & Healthcare Industry SWOT

Slovenia Political SWOT

Slovenia Economic SWOT

Slovenia Business Environment SWOT

Chapter 2 - Slovenia: Business Environment Ranking

Table: Central And Eastern Europe Pharmaceutical 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 - Slovenia: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Regime

IP Deficiencies

Patent Disputes

Pricing System

Reimbursement Policies

Eurozone Entry

Chapter 5 - Industry Developments

Healthcare Sector

Health Profile

Table: Leading Causes Of Death In Slovenia

Healthcare Insurance

Healthcare Expenditure

Pharmaceutical Industry

Recent Industry Developments

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Drug Market Indicators

Key Growth Factors - Industry

Table: Health Expenditure Indicators

Key Growth Factors - Macroeconomic

Table: GDP, Population & Output

Prescription Market Forecast

Table: Prescription Drug Market Indicators

Table: OTC Market Indicators

Generics & Branded Markets Forecast

Table: Slovenia Generics And Branded Market Indicators

Export/Import Forecasts

Table: Table: Export/Import Indicators

Other Healthcare Data Forecasts

Table: Socio-Demographic Indicators

Key Risks To BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Chapter 8 - Multinational Company Profiles

Pfizer

GlaxoSmithKline

Novartis

Sanofi-Aventis

Merck & Co

Chapter 9 - Indigenous Company Profiles

Krka

Chapter 10 - Lek

Chapter 11 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

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: