Greek Pharmaceutical Market to Show Modest Growth Despite Unstable Economy

The growing prevalence of chronic diseases and an increasing elderly population will boost the Greek pharmaceutical market, which will increase from approximately $7.8 billion in 2013 to $8.2 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 0.6%, forecasts research and consulting firm GlobalData.

According to the company’s latest report*, the Greek pharmaceutical market was valued at $7.5 billion in 2007; but, following the recent economic crisis, net public pharmaceutical expenditure saw a cumulative decline of $1.67 billion. This decline was due to amendments made to medicine prices, as well as changes to the reimbursement rates for Social Security Funds (SSFs) and to the regulation of wholesale and retail margins.

The medical device sector will also experience modest growth, from $907 million in 2007 to $1.2 billion in 2020, at a CAGR of 2.7%. The major segments in 2012 were In Vitro Diagnostics (IVD) (20.8%), cardiovascular devices (11.6%), ophthalmic devices (9.7%), drug delivery devices (7.6%) and diagnostic imaging (7.4%).

Joshua Owide, Director of Healthcare Industry Dynamics, says: “As part of cost-containment measures, the Greek government is encouraging the use of generics with the aim that generics will eventually account for 50% of all medicines used in hospitals. As part of the economic reforms and austerity measures, nearly 95% of drug prices have been reduced by 20%.

“Furthermore, healthcare reforms in terms of reimbursement have led to an increase in the co-payments for certain chronic diseases, with rates ranging from 10% to 25%. These, along with other cost-containment measures, will restrict market growth.”

The Greek government, however, has introduced several policies to strengthen its free healthcare system and help improve patients’ health outcomes and quality of life in the long run.

*CountryFocus: Healthcare, Regulatory and Reimbursement Landscape — Greece