This is a best prospect industry sector for this country. Includes a market overview and trade data.


Overview

Following the 2011-2013 fiscal crisis and tightening of state budgets, both the pharmaceutical and medical device sectors are again growing in Latvia.
 
We maintain our forecast that the medical device market will grow at a CAGR of 3.7% in local currency terms over the 2015-2020 period. This reflects our revised forecast for annual real GDP growth which we expect to register at 3-4% through to 2020. Medical device market growth will peak in euro terms at 4.0% in 2018, before falling back to 3.8% by 2020.
 
The state has considerable influence on the medical services sector in Latvia.  All of the primary hospitals and rehabilitation centers are state-owned and receive centralized financing from the state budget.  Therefore, a large part of drug and pharmaceutical procurement passes through state-organized tenders.  However, the retail and wholesale market for medical products is left to private businesses.
 
Latvia, Estonia, and Lithuania have signed the Joint Baltic Drug Procurement Agreement. This agreement may increase the volume of ordered medicines, thus attracting interest from more pharmaceutical companies to participate in tenders and putting manufacturers under pressure to offer discounts on pharmaceutical prices.
 
Some prescribed drugs, such as those used for diabetes, HIV, and TB, are subsidized by the state, and Latvian authorities have indicated that fighting tuberculosis, tick-borne encephalitis, and HIV are key priorities. However, U.S. pharmaceutical companies have indicated that there is insufficient funding for innovative medicines.
 
A pharmaceuticals company could enter the market either by opening a branch office in Latvia or by approaching a Latvian wholesale company that already has an established brand name and base of clients.
 
All drugs sold in Latvia must be certified by the State Drugs Agency before entering the market.  U.S. Food and Drug Administration (FDA) certification is not enough to sell drugs in Latvia, although FDA results will be helpful in the certification process.
 
Leading Sub-Sectors

There are excellent opportunities for both innovative and generic drugs.
Growth in large scale imaging equipment will again reach 2010 levels by 2020, while personalized devices such as pacemakers and dental equipment is back to prior levels and growing at 3% to 4% per annum.

Opportunities

Please see the Supplement to the Official Journal of the European Union dedicated to European public procurement.

TED Home
 
Latvian Export and Import Directory
 
Latvia puts a significant emphasis on public health and disease prevention schemes.  As such, there are numerous opportunities in vaccines and medicines for TB, tick-borne encephalitis, diabetes, HIV, flu, and other diseases.

Web Resources

The Ministry of Health of the Republic of Latvia
State Agency of Medicines of Latvia
Latvian Investment and Development Agency
Latvian  Chemical, Pharmaceutical and Biotechnological Industry overview

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