Greek Market to Show Modest Growth; Indian Market to Reach $56 billion

The growing prevalence of chronic diseases and an increasing elderly population will boost the Greek pharmaceutical market, which will increase from approximately $7.8 billion in 2013 to $8.2 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 0.6%, forecasts research and consulting firm GlobalData.

According to the company’s latest report, CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Greece, the Greek pharmaceutical market was valued at $7.5 billion in 2007; but, following the recent economic crisis, net public pharmaceutical expenditure saw a cumulative decline of $1.67 billion. This decline was due to amendments made to medicine prices, as well as changes to the reimbursement rates for Social Security Funds (SSFs) and to the regulation of wholesale and retail margins.

The medical device sector will also experience modest growth, from $907 million in 2007 to $1.2 billion in 2020, at a CAGR of 2.7%. The major segments in 2012 were In Vitro Diagnostics (IVD) (20.8%), cardiovascular devices (11.6%), ophthalmic devices (9.7%), drug delivery devices (7.6%), and diagnostic imaging (7.4%).

“As part of cost-containment measures, the Greek government is encouraging the use of generics with the aim that generics will eventually account for 50% of all medicines used in hospitals,” said Joshua Owide, Director of Healthcare Industry Dynamics. “As part of the economic reforms and austerity measures, nearly 95% of drug prices have been reduced by 20%. Furthermore, healthcare reforms in terms of reimbursement have led to an increase in the co-payments for certain chronic diseases, with rates ranging from 10% to 25%. These, along with other cost-containment measures, will restrict market growth.”

However, the Greek government has introduced several policies in order to strengthen its free healthcare system and help improve patients’ health outcomes and quality of life in the long run. For more information on CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Greece, viusit www.globaldata.com.

Driven by the country’s growing economy and population income, the Indian pharmaceutical market will increase significantly from approximately $21 billion in 2013 to $56 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 15%, forecasts research and consulting firm GlobalData.

According to the company’s report, CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – India, the medical device sector will also experience steady growth from $7.5 billion in 2013 to $15.3 billion in 2020, at a CAGR of 11%. In 2012, the main segments were ophthalmic devices (38.3%), In-Vitro Diagnostics devices (9%), hospital supplies (8.9%), and cardiovascular devices (8.1%).

“India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas,” said Mr. Owide. “However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”

Still, the lack of transparency in the Indian drug regulatory system and weak patent laws are a major challenge for foreign multinational companies attempting to enter or expand in the Indian healthcare market.

“In order to increase transparency in the regulatory system, the Ministry of Health and Family Welfare is planning to introduce a bill into parliament in 2013, to create the Central Drug Authority (CDA), which will replace the current Central Drug Standard Control Organization. Once the CDA is formed, it will greatly improve the regulatory environment for pharmaceuticals, medical devices and clinical trials,” added Mr. Owide.

However, there is also a need for India to improve its healthcare infrastructure in rural areas and expand its universal health coverage, since 80.6% of the population was not covered by any form of health insurance in 2012 – a factor which could hinder further growth of the market. For more information on CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – India, visit www.globaldata.com.

GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Its research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling them to offer the most relevant, reliable, and actionable strategic business intelligence available for a wide range of industries.