Survey: Pharmaceutical market began recovering in 2015

Reducing public pharmaceutical spending is a basic tool of Greek authorities to limit health spending in the country, through a series of price cuts, obligatory discounts and rebates, Alexis Nikolaidis, Economic Research & Sectorial Studies Senior Analyst in Infobank Hellastat said, commenting on the results of a recent survey on wholesale pharmaceutical trade.

Nikolaidis said net public spending was around 2.0 billion euros in 2015, down 60.5 pct compared with 2009. This fall was the result of a 12 re-pricing made since 2010, a measure which led to a sharp decline in the value of pharmaceuticals market. However, the market began a recovery in 2015 helped by the increased volume of perscriptions and an increase in parallel exports. Parallel exports were falling by 2014, but rose 31 pct in 2015 to 401.64 million euros.

Exports are a decisive factor for the viability of pharmaceutical warehouses, IBHS said in a report. Maria Metaxogeni, chief executive in Infobank Hellastat said the market needs a rationalization of the public pharmaceutical spending to sustainable levels.

IBHS analyzed the financial reports of 88 enterprises in the sector. Accumulated turnover grew 3.3 pct to 2.56 billion euros, EBITDA totaled 49 million euros, down 15 pct, while pre-tax earnings fell 20 pct to 34.2 million euros. EBITDA margin stabilized at 1.7 pct.