Estonia Market Research

The Estonia market research shows that most multinational drug makers find Estonia a mildly attractive proposition for conducting business. In BMI’s Pharmaceuticals and Healthcare Business Environment Ratings for Emerging Europ... view more

Estonia Market Research

The Estonia market research shows that most multinational drug makers find Estonia a mildly attractive proposition for conducting business. In BMI’s Pharmaceuticals and Healthcare Business Environment Ratings for Emerging Europe, Estonia ranks 11th and ranks 43rd on a global basis. Though Estonia was the only market in the Baltic region to escape contractions due to the economic slowdown, it is still one of the smallest markets in the region. The scores which are forecasted are still in the mid-single digits and there is very precious little which is being done to increase sales. But on the other hand, there is more than average per capita spending which signifies that there is scope for penetration of higher priced products. Though it can be said that the pharmaceutical industry is one of the least affected by the recession, the Baltic region is the most affected by the downturn. However, now the recession is almost over in Estonia which means that there are estimates for posting positive year-on-year growth in the estimate period from 2010-2014.

BMI indicates that the pharmaceutical sector will experience a good profit in 2010, but the overall growth in the next decade would be a bit slow with growth rate not climbing too high. The data available suggests that there was a growth of 1.8% in pharmaceutical sales in 2009, while there is predicted a growth of 4.9% in 2010. Overall, the growth rate of sales in the forecast period is expected to be around 5.3% from 2010-2014. One of the major reasons why the pharmaceutical market is not extending a larger growth rate is the small population size. However, the country’s relative small age and demographics, suggest that there will be improved growth rate over the next decade. BMI’s Burden of Diseases Database lays down the facts about countries in the Emerging Europe region. Estonia is above average for all the disability adjusted life years lost to all kinds of diseases and injuries. Though the growth rate is going to be improving till the end of 2030, it won’t be long before Estonia retains its above-average status in the Emerging Europe region.

A key reason for the drug makers, not extending their full involvement in the Estonian pharmaceutical market, is the absence of good regulatory measures. Some of the invasive measures include negative pricing and reimbursement changes. Apart from these, there are also new proposals which ask the pharmacists to offer patients the cheapest version of the medicine prescribed. BMI believes that the introduction of new dispensing requirements will help low-cost generic manufacturers rather than higher priced brands. Though there have been criticisms of the regulatory environment in Estonia, it still remains practically transparent due to a hassle-free agreement with EU, following its accession in 2004.