Weak Outlook For Pharmaceutical Industry

BMI View: Lithuania is one of our least favourite Central and Eastern European (CEE) pharmaceutical markets. A weak economic environment, high unemployment and the prospect of a relatively slow macroeconomic recovery will restrict any rises in consumer spending. Furthermore, the government's fiscal austerity measures will limit increases in public healthcare expenditure and curb contributions to drug reimbursements.The introduction of drug price capping on non-reimbursable medicines and amendments to Lithuania's reference pricing scheme are intended to control the cost of medicines for consumers and the state. However, BMI believes drugmakers should be encouraged by the government's efforts to control wholesale and retail mark-ups on pharmaceuticals. This will eventually lead to the tighter control of medicine prices at the consumer level and will ensure stability between drug producer and pharmacy prices.

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