Hungarian Pharmaceuticals Production Seen Rising

Data released by Hungary's state statistics bureau indicate that the country's production of pharmaceuticals and raw materials was 8.1 percent higher than in 2003. Sales rose by 10.6 percent last year, on an 18.1 percent rise in exports but a 5 percent fall in domestic market turnover. Meanwhile, the figures show that drug prices were largely level in December and January, rising by 6.7 percent and falling 6.7 percent, respectively. Consumer prices in the two months were 0.7 percent higher in December and rose by 4.1 percent in January.

The Hungarian government is also in discussion on supplies of generic drugs with a number of Indian manufacturers, including Zydus Cadila and Ranbaxy. Foreign firms already account for two-thirds of Hungary's prescription drug market, estimated at some US$1.2bn per year. The government is pursuing an aggressive cost-cutting policy, and recently reached agreement with manufacturers to freeze price rises on 4,000 drugs at 7 percent until December 2006, roughly equal to the expected rate of inflation in the period.