“Last year, companies in the association laid off 300-350 employees and dropped products from their portfolios. There are companies that are tempted to leave the Romanian market. This is not to spark panic that there will be a medicine shortage but to say that only profitable, more expensive, drugs will remain on the market. That means the public health insurance house and patients will pay more,” Dragos Damian, head of the Association of Generic Medicine Producers in Romania (APMGR ), told MEDIAFAX.
Before the layoffs, companies part of APMGR had 8,000 employees in total. Layoffs mainly targeted sales departments and are set to continue unless Romania makes considerable changes in the financing of the healthcare system and the clawback tax.
According to the association, starting 2011, when the clawback tax was introduced, 1,332 drugs have disappeared from the local market. More than half of these costs under RON50 and 45% were made in Romania.
Damian estimates production for the domestic market dropped by around 10% last year, as companies preferred to focus on exports and the production of over-the-counter generics.
“Companies’ financial reports are looking good because we’re starting to focus on non-prescription drugs and exports, but this is not our core business. Our core business remains in prescription drugs made for the Romanian market,” he said.
He added production of prescription drugs account for 70% of local production and non-prescription for 30% from 85% and 15%, respectively, two years ago.
Damian also said exports stagnated last year, as the drop registered on markets in Russia and Ukraine was leveled by growth on other markets. Exports of local generics producers are estimated at over EUR100 million a year.
As regards investments, Damian said pharmaceutical companies mainly invested in upgrading production lines but not expansion and larger investments to be announced will go into supporting exports.
“The Romanian pharmaceutical industry will see very few investments in 2015. There are a few companies that have announced investments, Pfizer in Cluj and Sandoz in Targu Mures, but these will only target exports,” Damian added.
APMGR members have 22 production units in Bucharest, Baia Mare, Cluj Napoca, Targu Mures and Timisoara, where they make over 1,500 generic drugs covering all therapeutic classes.
APMGR represents the main generic medicine producers in Romania: Actavis, AC Helcor, B. Braun Medical, Biofarm, Dr. Reddy’s, Desitin Pharma, Egis, Fresenius Kabi, Gedeon Richter, Glenmark Pharmaceuticals, Infomed Fluids, Krka, Labormed, Magistra CC, Medochemie, Sandoz, Terapia-Ranbaxy, Teva, and Zentiva.