CEE RRRs Broadly Down In Q412

BMI View: A combination of slightly weaker nominal growth outlooks for the pharmaceutical markets of Central and Eastern Europe (CEE) and downward revisions to our medium-term expectations for the strength of European currencies against the US dollar has had a negative impact on our Pharmaceutical & Healthcare Risk/Reward Ratings (RRRs) scores in our Q412 assessment. As BMI has emphasised repeatedly, 2012 will be a decisive and painful year for the region, with the pursuit of pharmaceutical austerity with cuts to publicly funded medicines coinciding with a weakened consumer limiting growth. In our latest assessment, our view on long-term outperformer Poland has weakened, with market dynamics worse than previously expected. The ascent of Russia to our top-three CEE markets has been long in the making. Russia's stable and positive market outlook, as Western and Central Europe drug markets stagnate and decline, is a key factor in its improving position.

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