ARPIM: Romania Ranks Last In EU By Investments In Drug Research And Development

05.25.2011 By Gavrila Oana

Romania ranks last in the European Union by investments in the research and development of new drugs, with an average EUR5 per capita, the local association of international drug makers ARPIM said Wednesday, citing a report of the European Parliament.

According to the report, the top three European countries by investments in the research and development of new drugs are Denmark (EuR190 per capita), Belgium (EUR170 per capita) and Sweden (EUR80 per capita).

At the opposite pole, there is Greece (EUR17 per capital), Portugal (EUR15 per capita) and Romania (EUR5 per capita).

In Romania, unlike other EU states, generic drugs have a better market penetration. Generics accounted for 64% in volume and 24.2% in value of all prescription drugs sold in 2010, while original drugs accounted for 36% in volume and 74% in value, which places Romania above the EU average of 22.4% in value for the consumption of generics.

The EP report shows that Romania, unlike other countries in Central and Eastern Europe, promotes identical generic drugs, sold under commercial brands, which are more expensive than generics sold under the name of the molecule they contain.

Sales of expensive generics increased in the second half of 2010, while cheap generics lost market share both in value (from 4.6% to 4.2%) and in volume (from 19.9% in 2009 to 17.2% in 2010).

The average quarterly value of expensive generics increased from about EUR84 million in 2009, to EUR99 million in 2010 - an increase of about 17%.

"The report drawn up by the European parliament indicates the EU's more developed countries have an issue of balance between encouraging innovation and limiting the increase of healthcare costs. The pharmaceutical industry is seen as one of the largest and most important investors in research and development in Europe, with over 600,000 highly trained employees and over EUR26 billion invested each year," ARPIM said in its press release.