EU Integration Set to Drive Hungarian Generics Sector

Generics account for about one-third of domestic sales in Hungary, and more than 50% of all drugs available on the market are generics. However, the sector's market share has followed a constant downward trend in recent years, primarily due to the introduction of tighter patent laws and the increasing popularity of imported branded medicines.

Despite further decline and several product withdrawals expected ahead of full European Union (EU) integration, the generics sector is nevertheless expected to continue to play a major role on the domestic market. The introduction of "Western style" generics should benefit sector development, driven by government cost-containment policy, which should also continue to promote the cheap generics sector.

Hungary is home to a number of leading regional generics manufacturers such as Gedeon Richter, and foreign generics firms including Israel's Teva Pharmaceutical also manufacture locally. As patent legislation gradually tightens, the market's growing sophistication is expected to boost spending to almost US$600mn at consumer prices by 2007.