Local Hungarian Drug Firm Looks to Expand Despite Increase in Prices

Hungarian drug manufacturer Beres Gyogyszergyar unveiled a new development laboratory in February 2005, which was worth HUF180mn (US$983,579). The company has 31 drugs on the Hungarian market (primarily vitamins and food supplements), 24 drugs in registration and 29 drugs in clinical trials. Net sales for 2004 are likely to have reached HUF5bn (US$27.3mn).

In spite of recent increases in the retail price of some 4,000 reimbursable medicines in Hungary, Beres will not be affected by these changes, as most of its products are not eligible for reimbursement. The company is likely to be spared the mandatory price cuts and requirements to cover any pharmaceutical budget overspend that have been imposed on producers of reimbursable drugs in Hungary.

Due to changes in the country's pricing and reimbursement policy, many multinationals had considered pulling out of Hungary. However, GSK's Hungarian subsidiary announced that the UK drugmaker is not contemplating pulling out of the country, and added that the firm is ready to negotiate with the government on drug financing. Indeed, the company is presently investing EUR60mn (US$79mn) in its vaccine factory in Godollo, near Budapest, which should be finished by 2006.