Budget Revisions Reveal Short-Term Benefits, But Long-Term Saving Target Remains

BMI View: Small changes to Hungary's 2012 budget plan are moderately good news for drugmakers. However, longer-term savings targets have been maintained and the impact of legislated moves to shift the financial burden onto drug producers and distributors continues. As a result of this development we have increased our pharmaceutical forecasts for 2012 - though we continue to expect a significant contraction - but dropped our year-on-year (y-o-y) growth projections for 2013. We note that our growth projections for 2012 and 2013 do not reveal the full extent of the damage the Széll Kálmán plan will have on drugmakers operating in the market, with increased levies and fees affecting the bottom line.

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