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Healthcare: Study: 10% of monthly household expenses allocated to pharmaceutical products
About 10% of monthly household expenses are for pharmaceutical products, this type of goods having a relatively constant price in the past year, while the sector profitability went up from 3.1% in 2015, to 3.9% in 2016, according to a study on trade of pharmaceutical products published by Coface on Friday.
“About 70 lei was spent monthly for pharmaceutical products, exceeding only two of non-food products - tobacco and fuel,” the study shows, referring mostly to 2016.
Compared to 2012, monthly expenses for pharmaceutical products went up by 10 lei.
“This could be explained by the opening of new drug stores , pharmaceutical points and pharmaceutical warehouses, which reached 9,947 units in 2017. In the case of the three mentioned categories, private property prevails. Due to the evolution of imports, of the value of people’s expenses with medicines, we can say that in 2017, the sector had increase premises,”the analysis shows.
For the analysis of pharmaceutical product trade, data from 1,634 companies were taken into consideration for 2016, for a consolidated business figure of 27.5 billion lei. Companies in the sector analysed had a positive income evolution in 2016 compared to 2015, profit growing slightly.
Romania’s non EU export partners are Russia, UAE and the USA, representing 55%.
The overall export value of pharmaceutical products was 751 million euro in 2017, of which 512 million euro were exports to EU. Overall imports amounted to 2.9 billion euro in 2017, 2.6 billion euro coming from EU countries.
Of the total of 1,634 active companies in 2016, Coface analysed 269 companies, about 16.5%, with a share of 79% in the consolidated business figure at sector level. Most companies (48%) are considered companies with middle-high risk by Coface. 9% of companies have high insolvency risk and 39% have low insolvency risk.
“For retail trade sector of pharmaceutical products there was a drop of the number of companies with debts to the state budget in the last two years, but there was a high value of due amounts. The number of companies with business figure over 1 million euro with incidents in the last 2 years has grown. There were fewer court cases in the analysed sector, their number being slightly higher in 2017,”said Coface Romania senior financial analyst Nicoleta Maruntelu.