Local generics manufacturers confront burdening state receivables

Newsroom 12/08/2010 | 13:24

The Romanian Association of Generic Drugs Manufacturers APMRG says local pharma companies are confronting large amounts of state receivables, which stand by unofficial estimates at RON 3 billion. The situation leaves manufacturers with cash-flow problems impacting their production processes. CNAS, the national health insurance house in charge with managing funds in the health care industry, has not yet started to pay back the drugs used in 2010, and has not managed to complete compensating companies for the pharmaceuticals used last year, communication from APMRG shows.

The association says it is crediting the health care system with sums amounting to RON 1.5 million as generics occupy 62 percent of the total consumption but only 25 percent of the market value. APRMG says companies are currently facing 300 day payment terms, and is pointing to the worst crisis in the pharmaceutical system since 2004, even though the price of generics has gone down 10 percent over the past year.