Claw-Back Mechanism Angers Drug Producers

BMI View: The introduction of a revised claw-back mechanism in Romania has angered drugmakers operating in the market. BMI believes the current form of the legislation is overly simplistic and punishes drug suppliers in excess of their original exposure. Although it is very unlikely the industry will be able to suspend the new tax, it is possible they will be able to negotiate some amendments that would at least improve the predictability and fairness of the law. If no significant revisions are achieved, it is likely that drugmakers will reconsider their exposure to the market. We are considering an unfavourable downgrade to our industry risk indicator in BMI's Pharmaceuticals and Healthcare Business Environment Ratings (BERs), which would mean the attractiveness of Romania as a destination for drugmakers dropping from third in Central and Eastern Europe (CEE) to seventh.

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