Project no_File reference IMS Health Baltic September 2005 Baltic pharma market 1999 – 2004 Developments, changes and possible future trends

Project no_File reference

IMS Health Baltic • September 2005

Baltic pharma market 1999 – 2004

Developments, changes and possible future trends

2 IMS Health Baltic • September 2005


Agenda

• Baltic pharma market• Innovative and Generic segments• New launches• Reimbursed and Non-reimbursed segments



Baltic pharma market: sales 1999 – 2004, retail prices, Euro

All sums in Euro

635,094,912

548,887,459

512,183,662

513,196,598

404,514,738

344,120,445

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

1999 2000 2001 2002 2003 2004

Baltics

BALT ACG 13.0%

IMS Dataview data, 2004

IMS HEALTH MIDAS®, MAT Dec 2004

2004 Pharma market, Euro

ACG 99-03

World 432 billion 10%

Europe 128 billion 9%



Baltic pharma market: structure by country in 1999 – 2004, retail prices, %

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Lithuania Latvia Estonia

EST 21.8%

LV 24.0%

LT 54.2%

2004




Baltic pharma market: sales by country 1999 – 2004, retail prices, Euro

All sums in Euro

174,207,088204,382,688

283,350,368 277,586,560301,527,296

344,033,344

113,439,048

128,683,272

128,143,960

138,364,672137,069,104

152,595,104

56,474,309

71,448,778

91,481,558

106,453,142

110,291,059

138,466,464

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

1999 2000 2001 2002 2003 2004

Lithuania Latvia Estonia

EST ACG 19.6%

LV ACG 6.1%

LT ACG 14.6%




Baltic pharma market: sales per capita by country 1999 – 2004, retail prices, Euro

All sums in Euro

40.34

49.77

58.4

98.3

86.15

79.3180.96

49.32

55.95

66.35

59.655.71

60.1651.03

78.7876.04

65.34

98.9

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004

Lithunia Latvia Estonia

EST ACG 19.6%

LV ACG 6.1%

LT ACG 14.6%




Agenda




Baltic pharma market: structure in 1999 – 2004, retail prices,%

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Generics Innovative


Inno 48.6%

Gen 51.4%

2004

Inno 40.8%

Gen 59.2%

1999



Estonian pharma market: structure in 1999 – 2004, retail prices, Euro

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Generic Innovative

2004

56.8%

43.2%


1999

50.7%

49.3%



Baltic pharma market: sales in 1999 – 2004, retail prices, Euro

All sums in Euro

326,413,431

282,845,530255,851,060

246,443,691

229,686,511203,793,341

308,681,481

266,041,929

256,332,602266,752,907

174,828,227

140,327,104

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

1999 2000 2001 2002 2003 2004

Generics Innovative

ACG Inno 17.1%

ACG Gen 9.9%

BALT ACG 13.0%




Estonian pharma market: sales in 1999 – 2004, retail prices, Euro

27,815,51834,672,182

40,056,877

45,729,859

49,737,750

59,857,500

28,658,791

36,776,596

51,424,681

60,723,283 60,553,309

78,608,964

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

1999 2000 2001 2002 2003 2004

Generic Innovative

Estonia ACG 19.6%

ACG

Inno 22.4%

Gen 16.6%




Baltic pharma market: structure in 1999 – 2004, units

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Generics Innovative


Inno 19.8%

Gen 80.2%

2004

Inov 14.7%

Gen 85.3%

1999



Estonian pharma market: structure in 1999 – 2004, units

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Generic Innovative

2004

31.6%

68.4%


1999

25.0%

75.0%



Agenda




Baltic pharma market: structure in 1999 – 2004, retail prices, %

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Old products New Generics New Innovative

New Inno 27.4%

Old 48.0%

BALT 100%


New Gen 24.6%



Estonian pharma market: structure in 1999 – 2004, retail prices, %

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Old products New Generic New Innovative

Estonia

ACG

New Inno 22.1%

Old 56.0%


New Gen 21.9%



Baltic pharma market: sales in 1999 – 2004, units

units

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Old products New Generics New Innovative

New Inno 8.2%

Old 56.2%

2004


New Gen 35.5%



Estonian pharma market: structure in 1999 – 2004, units

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004

Old products New Generic New Innovative

Estonia

2004

New Inno 8.2%

Old 61.0%


New Gen 30.8%



4%

8%

2%

35%

10%

33%

30%

37%

22%

3%

5%

2%

16%

7%

19%

20%

7%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Italy

Spain

Japan

Canada

France

UK

Germany

USA

Total

% Share (Value)

% Share (Volume)

Generics’ share in pharma markets

7%

21%

24%

8%

7%

5%

Generics Brands

7% 1%

31% 6%

16% 8%

18% 5%

-3% 2%

11% 6%

% Growth Constant $

Source: IMS HEALTH MIDAS®, MAT Dec 2004



Agenda




Baltic pharma market: RX sales in 2000 – 2004, retail prices, Euro

All sums in Euro

123,360,230144,573,336

195,431,839198,136,900

198,229,056

38,869,727

116,055,673

63,997,34584,059,750

142,894,342136,491,418

133,624,835120,909,921

118,806,838

129,922,527

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

2000 2001 2002 2003 2004

Reimbursed Co-payment Non-reimbursed

IMS Dataview data, 2004National Sick Funds data, 2004



Baltic pharma market: RX sales structure in 2000 – 2004, retail prices, Euro

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004


Non-re 27.6%

Reimb 42.1%

2004

Co-pay 30.3%




Estonian pharma market: RX sales structure in 2000 – 2004, %

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004


Estonia

20042000

Non-re 13.2%

Co-pay 36.1%

Reimb 50.7%




Baltic pharma market: RX reimbursed sales per capita by country in 2004, retail prices, Euro

Euro

32.27

13.08

39.44

27.53

22.53

10.73

28.1

19.85

0 10 20 30 40 50 60 70 80

Lithuania

Latvia

Estonia

Baltics

Reimbursed Co-payment




Baltic pharma market: RX reimbursed sales per capita by country in 2004, retail prices, Euro

%

32.27

13.08

39.44

27.53

22.53

10.73

28.1

19.85

0% 20% 40% 60% 80% 100%

Lithuania

Latvia

Estonia

Baltics



58.4%

54.9%

58.9%

41.6%

45.1%

41.1%

58.1% 41.9%




Baltic pharma market: RX expenditures per capita by country in 2004, retail prices, Euro

Euro

35,44

19,43

41,73

31,55

37,29

27,32

36,09

33,87

0 20 40 60 80 100

Lithuania

Latvia

Estonia

Baltics

State Out of pocket




Baltic pharma market: RX expenditures’ structure per capita by country in 2004, retail prices, Euro

All sums in Euro

35,44

19,43

41,73

31,55

37,29

27,32

36,09

33,87

0% 20% 40% 60% 80% 100%

Lithuania

Latvia

Estonia

Baltics

State Out of pocket


53.6%

41.6%

48.7%

46.4%

58.4%

51.3%

48.2% 51.8%

State Patient



European Union: expenses on pharmaceuticals in 2001, USD per capita

2001, OECD Health Data2001, IMS Data2001, National Sick Fund data

105

115

131

132

165

191

200

207

243

291

34

112

85

123

11

161

90

65

101

150

0 50 100 150 200 250 300 350 400 450 500

Greece

Denmark

Netherlands

Finland

Irland

Italy

Sweden

Austria

Germany

France

USD

Public

Private



European Union: expenses on pharmaceuticals in 2001, USD per capita

13

25

26

33

61

65

68

41

34

47

62

13

40

21

0 50 100 150 200 250 300

Latvia

Estonia

Lithuania

Poland

Slovakia

Hungary

Czech

USD

Public

Private

2001, OECD Health Data2001, IMS Data2001, National Sick Fund data



European Union: Healthy Life Expectancy (HALE) at birth,years

2001, WHO Data67.8

69.0

69.2

69.6

69.7

69.9

70.1

70.1

70.2

70.2

70.4

70.6

70.9

71.0

71.0

71.3

71.8

65.0 66.0 67.0 68.0 69.0 70.0 71.0 72.0 73.0

EU average

Ireland

Malta

UK

Belgium

Netherlands

Denmark

Finland

Old EU average

Germany

Greece

Luxembourg

Spain

Austria

Italy

France

Sweden



European Union: Healthy Life Expectancy (HALE) at birth,years

2001, WHO data

60.0

61.1

61.8

62.0

64.1

64.3

64.3

66.2

66.6

66.8

67.7

54.0 56.0 58.0 60.0 62.0 64.0 66.0 68.0 70.0 72.0

Latvia

Lithuania

Hungary

Estonia

Slovakia

Poland

New EU average

Cyprus

Czech

Portugal

Slovenia



Baltic pharma market: state pharma spending per capita by country planed in 2005, retail prices, Euro

Euro

3.17

6.36

2.29

4.02

5.1

5.31

3.16

4.29

32.27

13.08

39.44

27.53

36.41

15.3

40.63

30.48

0 10 20 30 40 50

Lithuania

Latvia

Estonia

Baltics

Central tenders 2004 Central tenders 2005

Reimbursed 2004 Reimbursed 2005


Versus 2004

Reimb 3.0%Centr 38.0%

Reimb 17.0%Centr -16.5%





Conclusions

The Baltic pharma market is very small comparing with other European and Global pharma markets but demonstrates relatively high growth rate.

Generics have substantially higher shares in the Baltic pharma market comparing with the markets of Western Europe and the USA. The total generic segment of the Baltic market has shrank a little during the last years but newly launched generics continued to capture the major share of the new products’ segment in volume and a half of it in value.

The State pharma financing in the Baltic States is among the lowest in the European Union. It is increasing every year but still remains far below the European average.

One of the Health Care efficiency measures in the Baltic Sates - Healthy Life Expectancy at birth (HALE) - is among the lowest in the European Union. A good status of population health is an outcome of many factors, including allocation of sufficient financial recourses for an effective innovative pharmacological treatment.



Documents

Project no_File reference IMS Health Baltic September 2005 Baltic pharma market 1999 – 2004 Developments, changes and possible future trends