The results come after sales had increased 21% in lei (18% in euros) in the first three months of the year and the slowdown can be explained through companies’ focus on profitability in the second quarter, rather than on sales.
In terms of the number of units sold, the market contracted slightly, with the average price of a pack of medicines reaching RON22.4. In other words, fewer packs were sold, but they were more expensive.
“The obvious reduction of market growth in lei, accompanied by the slight decrease in volume, shows the first significant impact of measures to implement the claw-back tax: the focus has forcibly shifted from sales to profitability for most companies,” said Petru Craciun, general manager of Cegedim Romania.
The claw-back tax is levied on subsidized medicines and has been levied since the last quarter of 2011, with producers saying it has reached a very high level, of 30% of sales, which will force them to revise their portfolios. The payment of this tax has been a major strain on companies’ budgets because the amount due was much higher than expected by the industry.
Romanian fiscal authorities ANAF collected RON335.82 million (EUR76 million) in May this year for the claw-back tax (corresponding to sales recorded in the first quarter of the year), shows data of the institution.
Market players also believe the market has contracted because of this tax and say that in addition April was a very weak month.
“At Antibiotice, our six-month figures are as planned, but I don’t think any of the market players expected the claw-back tax to just go away, so there were companies which slowed down their pace,” said Ioan Nani, general manager of Antibiotice Iasi. He added that April was extremely weak, at a time when the industry expected a good performance after February was extremely tough because of the weather.
The biggest rise, of almost 8%, was recorded by sales through hospitals, while the increase on retail sales was almost 4%.
There was no change in the raking of the top 10 players in the industry, with French group Sanofi remaining leader.
Industry players expect a slight increase in the second half of the year.
(English version by Daniela Stoican)