Although companies are free to set their own prices, products will only be reimbursed at the level of the lowest generic drug in each class unless it can be shown that there is a distinct therapeutic benefit. The government hopes that this will limit the number of ‘me-too’ products that would previously have been reimbursed.
SWEDEN
The Swedish pharmaceutical market represents approximately 14.1% of total healthcare expenditure and 1.2% of GDP. The market is expected to increase at a rate of 4.6% per year at current dollar prices over the next few years, to be worth in excess of USD5.4 billion by 2011.
As is common with other western European countries, Sweden has an advanced healthcare system which is partially privately funded. As a percentage of GDP, health expenditure is above the European average.
NORWAY
Although Norway is not part of the European Union, the process for pharmaceutical registration has been aligned to EU regulations. The relative ease of entry to the Norwegian market has enabled foreign companies to set up manufacturing plants, especially since the increased transparency in the pharmaceutical pricing structure.
Since generic substitution was established in 2001, generic drugs have been able to gain an increasing share of the market, in terms of value and volume. In 2005, generics had 30.5% of sales and 54.2% of the market by volume.
LITHUANIA
Around 80% of the Lithuanian pharmaceutical market is supplied by imports. In 2004, Germany, Latvia and Belgium were the leading suppliers, accounting for almost 50% of imports. The value of imports has increased every year since 1999.
The Lithuanian pharmaceutical industry has failed to attract the interest of foreign manufacturers, unlike other new EU member states, such as Poland or Hungary. A recent legislative change, which makes it difficult for new companies to acquire import licences, may further dissuade pharmaceutical companies from setting up in Lithuania. Sanitas, the largest Lithuanian pharmaceutical company, has more than doubled its sales figures by acquiring two pharmaceutical companies in Central Europe. Sanitas purchased Slovakia’s Hoechst-Biotika in July 2005 and Poland’s Jelfa in April 2006. Sales grew by 174.1% between June 2005 and June 2006 as a result.
ESTONIA
In 2006, the Estonian market for pharmaceuticals is estimated at USD214 million, or USD160 per capita. It is expected that the market will continue to expand at a rate of 7.4% per annum, reaching USD306 million or USD232 per capita by 2011.
Around 85% of the pharmaceutical market is supplied by imports. Germany, Switzerland and Denmark were the leading suppliers in 2004, accounting for over 30% of imports. The value of imports has increased every year since 1999, following a slight decline.
