Project no_File reference IMS Health Baltic September 2005 Baltic pharma market 1999 – 2004 Developments, changes and possible future trends

IMS Health Baltic September 2005 Project no_File reference 2 Agenda Baltic pharma market Innovative and Generic segments New launches Reimbursed and Non-reimbursed segments

IMS Health Baltic September 2005 Project no_File reference 3 Baltic pharma market: sales 1999 – 2004, retail prices, Euro All sums in Euro BALT ACG 13.0% IMS Dataview data, 2004 IMS HEALTH MIDAS®, MAT Dec Pharma market, Euro ACG World432 billion10% Europe128 billion 9%

IMS Health Baltic September 2005 Project no_File reference 4 Baltic pharma market: structure by country in 1999 – 2004, retail prices, % % EST 21.8% LV 24.0% LT 54.2% 2004 IMS Dataview data, 2004

IMS Health Baltic September 2005 Project no_File reference 5 Baltic pharma market: sales by country 1999 – 2004, retail prices, Euro All sums in Euro EST ACG 19.6% LV ACG 6.1% LT ACG 14.6% IMS Dataview data, 2004

IMS Health Baltic September 2005 Project no_File reference 6 Baltic pharma market: sales per capita by country 1999 – 2004, retail prices, Euro All sums in Euro EST ACG 19.6% LV ACG 6.1% LT ACG 14.6% IMS Dataview data, 2004

IMS Health Baltic September 2005 Project no_File reference 7 Agenda Baltic pharma market Innovative and Generic segments New launches Reimbursed and Non-reimbursed segments

IMS Health Baltic September 2005 Project no_File reference 8 Baltic pharma market: structure in 1999 – 2004, retail prices,% % IMS Dataview data, 2004 Inno 48.6% Gen 51.4% 2004 Inno 40.8% Gen 59.2% 1999

IMS Health Baltic September 2005 Project no_File reference 9 Estonian pharma market: structure in 1999 – 2004, retail prices, Euro % 43.2% IMS Dataview data, % 49.3%

IMS Health Baltic September 2005 Project no_File reference 10 Baltic pharma market: sales in 1999 – 2004, retail prices, Euro All sums in Euro ACG Inno 17.1% ACG Gen 9.9% BALT ACG 13.0% IMS Dataview data, 2004

IMS Health Baltic September 2005 Project no_File reference 11 Estonian pharma market: sales in 1999 – 2004, retail prices, Euro Estonia ACG 19.6% ACG Inno 22.4% Gen 16.6% IMS Dataview data, 2004

IMS Health Baltic September 2005 Project no_File reference 12 Baltic pharma market: structure in 1999 – 2004, units % IMS Dataview data, 2004 Inno 19.8% Gen 80.2% 2004 Inov 14.7% Gen 85.3% 1999

IMS Health Baltic September 2005 Project no_File reference 13 Estonian pharma market: structure in 1999 – 2004, units % 68.4% IMS Dataview data, % 75.0%

IMS Health Baltic September 2005 Project no_File reference 14 Agenda Baltic pharma market Innovative and Generic segments New launches Reimbursed and Non-reimbursed segments

IMS Health Baltic September 2005 Project no_File reference 15 Baltic pharma market: structure in 1999 – 2004, retail prices, % % New Inno 27.4% Old 48.0% BALT 100% IMS Dataview data, 2004 New Gen 24.6%

IMS Health Baltic September 2005 Project no_File reference 16 Estonian pharma market: structure in 1999 – 2004, retail prices, % Estonia ACG New Inno 22.1% Old 56.0% IMS Dataview data, 2004 New Gen 21.9%

IMS Health Baltic September 2005 Project no_File reference 17 Baltic pharma market: sales in 1999 – 2004, units units New Inno 8.2% Old 56.2% 2004 IMS Dataview data, 2004 New Gen 35.5%

IMS Health Baltic September 2005 Project no_File reference 18 Estonian pharma market: structure in 1999 – 2004, units Estonia 2004 New Inno 8.2% Old 61.0% IMS Dataview data, 2004 New Gen 30.8%

IMS Health Baltic September 2005 Project no_File reference 19 Generics’ share in pharma markets 7% 21% 24% 8% 7% 5% Generics Brands 7% 1% 31% 6% 16% 8% 18% 5% -3% 2% 11% 6% % Growth Constant $ Source: IMS HEALTH MIDAS®, MAT Dec 2004

IMS Health Baltic September 2005 Project no_File reference 20 Agenda Baltic pharma market Innovative and Generic segments New launches Reimbursed and Non-reimbursed segments

IMS Health Baltic September 2005 Project no_File reference 21 Baltic pharma market: RX sales in 2000 – 2004, retail prices, Euro All sums in Euro IMS Dataview data, 2004 National Sick Funds data, 2004

IMS Health Baltic September 2005 Project no_File reference 22 Baltic pharma market: RX sales structure in 2000 – 2004, retail prices, Euro % Non-re 27.6% Reimb 42.1% 2004 Co-pay 30.3% IMS Dataview data, 2004 National Sick Funds data, 2004

IMS Health Baltic September 2005 Project no_File reference 23 Estonian pharma market: RX sales structure in 2000 – 2004, % Estonia Non-re 13.2% Co-pay 36.1% Reimb 50.7% IMS Dataview data, 2004 National Sick Funds data, 2004

IMS Health Baltic September 2005 Project no_File reference 24 Baltic pharma market: RX reimbursed sales per capita by country in 2004, retail prices, Euro Euro IMS Dataview data, 2004 National Sick Funds data, 2004

IMS Health Baltic September 2005 Project no_File reference 25 Baltic pharma market: RX reimbursed sales per capita by country in 2004, retail prices, Euro % IMS Dataview data, 2004 National Sick Funds data, % 54.9% 58.9% 41.6% 45.1% 41.1% 58.1% 41.9% Reimbursed Co-payment

IMS Health Baltic September 2005 Project no_File reference 26 Baltic pharma market: RX expenditures per capita by country in 2004, retail prices, Euro Euro IMS Dataview data, 2004 National Sick Funds data, 2004

IMS Health Baltic September 2005 Project no_File reference 27 Baltic pharma market: RX expenditures’ structure per capita by country in 2004, retail prices, Euro All sums in Euro IMS Dataview data, 2004 National Sick Funds data, % 41.6% 48.7% 46.4% 58.4% 51.3% 48.2% 51.8% State Patient

IMS Health Baltic September 2005 Project no_File reference 28 European Union: expenses on pharmaceuticals in 2001, USD per capita 2001, OECD Health Data 2001, IMS Data 2001, National Sick Fund data

IMS Health Baltic September 2005 Project no_File reference 29 European Union: expenses on pharmaceuticals in 2001, USD per capita 2001, OECD Health Data 2001, IMS Data 2001, National Sick Fund data

IMS Health Baltic September 2005 Project no_File reference 30 European Union: Healthy Life Expectancy (HALE) at birth, years 2001, WHO Data

IMS Health Baltic September 2005 Project no_File reference 31 European Union: Healthy Life Expectancy (HALE) at birth, years 2001, WHO data

IMS Health Baltic September 2005 Project no_File reference 32 Baltic pharma market: state pharma spending per capita by country planed in 2005, retail prices, Euro Euro IMS Dataview data, 2005 National Sick Funds data, 2005 Versus 2004 Reimb 3.0% Centr 38.0% Reimb 17.0% Centr -16.5% Reimb 12.82% Centr 60.88% Reimb 10.7% Centr 6.7%

IMS Health Baltic September 2005 Project no_File reference 33 Conclusions The Baltic pharma market is very small comparing with other European and Global pharma markets but demonstrates relatively high growth rate. Generics have substantially higher shares in the Baltic pharma market comparing with the markets of Western Europe and the USA. The total generic segment of the Baltic market has shrank a little during the last years but newly launched generics continued to capture the major share of the new products’ segment in volume and a half of it in value. The State pharma financing in the Baltic States is among the lowest in the European Union. It is increasing every year but still remains far below the European average. One of the Health Care efficiency measures in the Baltic Sates - Healthy Life Expectancy at birth (HALE) - is among the lowest in the European Union. A good status of population health is an outcome of many factors, including allocation of sufficient financial recourses for an effective innovative pharmacological treatment.

IMS Health Baltic September 2005 Project no_File reference 34