Is Romania’s pharmaceutical worry an epidemic or pandemic?

Romania’s pharmaceutical market distribution prices increased by 3.6% y/y to EUR 691.9mn in Q1/2013. The market edged up a mere 0.6% q/q in the quarter following difficulties stemming from regulatory and legislative constraints and not weak demand.

Prospects for the full-year pharmaceutical sales remain moderate. Market projections expect 1.4% y/y advance in local currency, while in EUR and USD terms the sales could even decline, depending on the evolution of the exchange rate.

Pharma quarterly sales in 2005-2013 (EUR mn, PPP)

Pharmaceutical sales in 2005-2013f (annual, RON mn, y/y)

Much more in the Intellinews report: Romania Pharmaceutical>>

 

E-Commerce proves to be a booming sector in Poland

The IT market value maintained a positive annual performance across all major segments namely hardware, software and services in 2012.

Though the pace decelerated visibly compared to 2011, the Polish IT market remains as one of the fastest growing market in the CEE region and is expected to continue recording robust increase in the coming years.

EU-funded IT projects are expected to be the main driver for the market’s development this year. Besides that, the demand coming from the enterprise sector (large companies and SMEs) also remains strong.

According to market estimates the e-commerce segment increased by nearly 23% y/y in 2012 and is forecasted to continue developing at an accelerated pace in 2013, above the projected 16.1% y/y European average.

The share of e-commerce in the country’s total retail sales is expected to rise to over 4% this year from 3.8% in 2012 and 3.1% in 2011.

Figure 1 IT market value in 2010-2013f (PLN bn, y/y)

This is just a quick glimpse into the Intellinews Report: Intellinews – Polish IT Sector

 

Romania pharmaceutical market expected to grow in 2013

The Romanian pharmaceutical market growth eased to 8.3% y/y in 2012, from 12.4% y/y in 2011 and 18.8% y/y in 2010. The growth rates are expressed in RON and the consumer price inflation was 3.3% in 2012. In EUR terms, the pharmaceutical sales expanded by 3.1% y/y last year, a slow down from 11.5% y/y advance in 2011 and 19.6% y/y rise in 2010. The slowdown of the pharma market in 2012 was mainly because of financial constraints and not due to the potential demand for medicines, which is actually higher. The pharmaceutical sales are expected to edge up by only 1.4% y/y in 2013 when expressed in local currency, while in EUR and USD terms the market might even decline, according to  projections. Nonetheless, in volume terms, medicine sales will likely register positive y/y performance, as the demand for treatment is on the rise.

Learn more from our EMD report: Romania Pharmaceutical Report

 

Despite declining demand, Polish furniture market remains optimistic

The Polish furniture market has not been completely resilient to the negative global economic developments and shrinking domestic and external demand. After a record year in 2011, when sold production of furniture, as well as exports, registered double-digit annual growth, the market slowed down visibly in 2012. The manufacturers adjusted to the declining demand, restructuring businesses and downsizing output.
Nonetheless, overall Polish companies managed to cope well with the shift in demand and stable profitability rates in the industry are relevant under these conditions.
The turnover profitability rate in the furniture industry in Jan-Sep 2012 remained at the same level as in full year 2011, namely 4.1%, according to official statistics. Prospects for the Polish furniture market remain optimistic, despite the expected slowdown in the short run. The sector remains attractive for foreign investors, who remain highly interested in acquiring or developing production facilities in Poland.

Furniture industry- Net turnover, profitability rate in 2009-2012

Learn more from our Intellinews report: Polish Furniture Sector

 

Romanian pharmaceutical market falling sick?

Pharmaceutical sales increased by 5.2% y/y to RON 2.9bn (EUR 637.7mn) in Q3/2012, decelerating from the 12.6% y/y advance in H1. When expressed in EUR however, the market actually shrank by 0.9% y/y as the local currency weakened by 5.9% against EUR during the quarter.

The market growth is expected to ease to approximately 9.3% y/y this year (in RON terms) and a further 1.4% y/y in 2013. In EUR terms, it is a sliding speculation.

Despite tightening competition and delayed payments, the pharmaceutical companies reported improving financial results in Jan-Sep 2012. Domestic firms have plans to further expand their presence abroad and most market players project a positive y/y  results in 2012.

Figure 1 Pharma quarterly sales in 2005-2012 (EUR mn, PPP)

This is only a small extract of the insights in the Intellinews – Romania Pharmaceutical report: ; read more and purchase>>

 

Online media tops as prefered advertising choice in Poland

Poland’s advertising market growth slowed down visibly in 2011 and projections for 2012 are rather pessimistic. After a poor performance Q1, the Euro 2012 soccer championship did not show the expected positive impact upon the advertising market in Q2, as many companies adopted a cautious behaviour on such expenditures. Accordingly, market players expect the advertising market to drop by 0.4-5% y/y in full year 2012.

The online segment, on the other hand, seems resilient not only to overall economic factors, but also to the cautious behaviour showed by advertisers for the other channels. The Polish e-book market and mobile press are developing at an accelerated pace, while DTH TV providers invest in web VoD and DVB-H mobile TV services. Companies will likely continue to be interested in building new channels of distribution and the online media is expected to become soon the second news source in the country, after television.

Advertising market segmentation in 2011-2012 (% in total)

These are only a few of the insights in the new IntelliNews : Polish Media Sector Report. Learn more and purchase now>>

 

Pharmaceutical market in Romania will be largely impacted by the controversial claw-back tax

Romania’s pharmaceutical sales in the 12 months ending June 2012 increased by 13.6% y/y (16.9% y/y in local currency) to EUR 2.6bn (RON 11.5bn), backed by the good performance in the period Jul 2011 – Mar 2012. In Q2/2012, medicine sales dropped by 2.5% y/y to EUR 626mn (RON 2.77bn), compared to the 18% y/y expansion in Q1. In local currency, sales still managed to post positive 4.4% y/y growth in Q2, but the advance eased significantly from the 21.6% y/y surge in the previous quarter. The slowdown in growth pace (in RON) and the moderate decline of the market in volume terms (down by 0.5% y/y in Q2) reveal companies’ tendency to shift focus from market share expansion to profitability, after the government’s attempt to enforce the claw-back tax.

Figure 1 Pharma annual sales in 2004 – 2012 (EUR mn, PPP)

 

 

 

 

 

 

 

Projections for the performance of the pharma market this year remain largely on the optimistic side, ranging from 5.7% y/y to 8.9% y/y growth in local currency.  Nonetheless, the evolution of the market will be largely impacted by regulatory measures such as the controversial clawback tax amended this August and also by the budget allotted for subsidized drugs.

These are only a few of the insights in the new IntelliNews Report: Romania Pharmaceutical sector. Learn more and purchase now>>       

 

Growth in Polish IT sector

E-commerce continues to gain grounds in Poland and spending on e-commerce is forecasted to grow by 24.4% y/y to EUR 5.6bn in 2012, according to market data. The share of enterprises’ turnover from e-commerce increased to 11% in 2011, from 8% in 2010, yet is still below the 14% at EU27 level, Eurostat statistics show. The dynamics of the segment attracts new entries – global e-retailer Amazon plans to enter the Polish market in 2012, local media reported.

The Polish IT market increased by approximately 8-9% year over year in 2011, according to players’ estimates.

Polish IT companies continued to expand on the local market, by acquisitions or organic growth in 2011, but their interest in foreign markets is also on the rise. The biggest IT distributor ABC Data mulls entering Hungary, Slovenia and Bulgaria this year, while software company Quantum already established branches in Spain and Brasil. Exports of IT products and services increased by approximately 10% year over year to PLN 5.5bn (EUR 1.3bn) in 2011 and are expected to witness double-digit growth this year as well, according to market researches.

This is only a small portion of the insight provided in the IntelliNews report, Poland IT Sector. Read more and purchase>>