Ernst & Young: Pharma industry has real development potential in Romania but better legislation needed

The biotechnology industry has been growing globally in 2010, achieving profitability at an aggregate level, for the second year in a row, shows the study “Beyond Borders: Global Biotechnology report 2011”, launched by Ernst & Young. In Romania, the pharmaceutical industry has real potential for development, while some specific issues should be better clarified in the legislation, according to Ernst & Young. “In general, the pharmaceutical industry in Romania faces the same major problems highlighted in the Ernst & Young's report. However, there are specific issues that should be better clarified in the legislation, such as the innovative and generic compensation mechanisms and the clawback,” said Bogdan Tenu, Senior Manager of the Department of Assistance in Transactions, Ernst & Young. “The pharmaceutical industry has a real potential for development in Romania, although the growth rate decreased slightly in the last quarter. In the coming years we will see a further consolidation in this sector”, he added. Mergers and acquisitions involving biotechnology firms in Europe or USA, declined significantly from 58 in 2009 to 45 in 2010, but the total value of these transactions has remained relatively the same, shows the report. The capital invested in Europe has totaled EUR 1 billion, up from EUR 790 million last year. See the full report here. Irina Popescu, irina.popescu@romania-insider.com