Hungarian Drug Trade Balance to Reverse

The Hungarian government's harsh cost-cutting policy and the country's membership in the European Union have prompted the local industry to focus on the export market in recent years. The country is an important producer of generics, with foreign firms such as Israel's Teva accounting for roughly two-thirds of the domestic pharmaceuticals sector. However, domestic drug consumption is expected to rise this year, leading imports to outpace export growth.

The most recent official statistics indicate that Hungary's pharmaceutical and medical exports rose by some 52.6% to US$1.11bn in 2004, while imports increased by 29.4% to US$1.54bn in the year. The sharp rise in exports has also been led by recovery in key regional markets such as Russia, although with domestic demand understood to be growing, imports should become the faster-growing element in the country's pharmaceuticals trade balance. Although data for 2004 indicate a 5% fall in domestic drug consumption, solid economic growth is likely to drive up demand for relatively expensive imported medicines.