Slovenia - Pharmaceuticals

Pharmaceuticals

Last published date: 2022-07-29

Overview

Slovenia’s pharmaceutical market is very competitive. Once dominated by two local domestic generic producers, Lek and Krka, the market is now increasingly open to competition from foreign competitors. Innovative drug producers enjoyed favorable market conditions in Slovenia until 2007, when the government decreased spending on pharmaceuticals. Since then, the government has changed its pharmaceutical purchase process, worsening the position of established pharmaceutical companies. According to the Slovenian National Institute of Public Health, Slovenia spent approximately EUR 605 million on pharmaceuticals in 2021. Each Slovenian spends an average of EUR 287 each year to purchase an average of 8.43 prescription medications.

The Ministry of Health is the primary actor in Slovenia’s pharmaceutical market. The ministry develops healthcare policies, proposes the government’s healthcare budget, and monitors spending in the national healthcare fund, with an eye toward keeping medical costs as low as possible. Slovenia has introduced therapeutic reference pricing schemes similar to those of other EU member states, which have made market conditions difficult for producers of brand-name pharmaceuticals.

Experts forecast seven percent annual growth for the pharmaceutical market over the next two years, despite downward pressure on certain therapeutic products. Almost three quarters of all pharmaceuticals approved for sale in Slovenia are imported, accounting for nearly 16 percent of total health care spending. As of 2019, 73 percent of healthcare spending is publicly financed, and international comparisons show that drug consumption in Slovenia is higher than EU average and growing by 1.5 percent per year. Increased life expectancies and the growth in private health care insurance are expected to have a positive impact on the market.

Slovenia’s premier research institution, the Jozef Stefan Institute, is closely involved in chemical and pharmaceutical research and development, including therapeutic nanotechnology and biotechnology products.

Table: Total Market Size for Pharmaceuticals 2018-2021
Unit: USD millions	2018	2019	2020	2021
Total Local Production	2,614	2,666	2,700	2,884
Total Exports	2,145	2,450	2,560	2,679
Total Imports	374	370	400	400
Imports from the US	275	284	290	290
Total Market Size	550	560	583	605
Exchange Rates	1.05	1.05	1.05	1.05

(Source: Statistical Office of Slovenia, National Institute of Public Health)

Leading Sub-Sectors

Drugs for cardiovascular illnesses
Branded products for cancer treatments
Pharmaceuticals for psychotherapy
AIDS medications
Vitamins

Opportunities

The best prospects for American-made pharmaceutical companies are in the fields of cancer medications, cardiovascular medications, and bio-technologically-produced medications.