“The generic drug market is very competitive worldwide. () In Romania, generic drug producers using cheaper workforce and raw materials may hope to conquer the market,” said Mihai, adding that the current financial context with its budget constraints encourages the use of generic drugs.
However, the lack of predictability and an unfriendly business environment impact the drug market and keep investors away. “Mother-companies are no longer willing to acquire smaller competitors. They see no reason for such a move,” Mihai explained.
Between 2005 and 2006, international investors were highly interested in Romanian drug producers, while currently the Romania drug market is no longer attractive to investors.
The situation on the international market is a bit different. Recently, U.S. pharmaceutical company Watson announced it has completed the acquisition of Actavis for EUR4.25 billion. Actavis is also present in Romania where it owns drug producer Sindan Pharma. Watson also said it would change its name into Actavis.
The local generic drug market stood at 3.4 billion lei (some EUR800 million) in October 2011-September 2012, according to Zentiva, which cites data by market research company Cegedim Romania.
Zentiva is the largest player on the local generic drug market with a market share of 12%, according to the company, which cites Cegedim data. The ten largest generic drug producers in Romania registered cumulated sales of over RON2.5 billion (EUR550 million) and a market share of about 75%.
Over 1,500 generic drug products are manufactured in Romania. Their price does not exceed 65% of the price of the original products. Generic drugs lost ground between 2007 and 2011. Their market share dropped from 28% in 2007 to 22% in 2011 (by value).
(English version by Ioana Tudor)