This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/6/2019

Hungary’s market size is comparable with those in Slovakia and Austria.  The number of pharma and MedTech employees exceeds 48,000 people working for 150 export-driven medical manufacturers and the sector contributes a 4.9% output to Hungarian exports.  The country has a solid base for large-scale manufacturing of a range of medical devices and a century of medical technology traditions.  However, it is increasingly challenging for domestic production to compete with Western quality and innovative imports.  The Hungarian MedTech sector can boast a strong academic background, cutting edge research and development in university spinoffs with research areas in medical imaging, electrical and biosensor devices as well as lab diagnostics. 
Hungary's state-run hospitals generated debt of almost $137 million up to May 31st, 2019.  Growing hospital debt remains the biggest problem in the country’s healthcare system resulting in postponing surgeries and other inevitable treatments. Hungary has been criticized in several fields in healthcare calling for system-wide changes including:

  • Lack of planned surgeries available within 90 days or even postponing surgeries
  • Long wait time for treatment with special focus on orthopedics and neuro surgery
  • Under use of diagnostic examinations such as computed tomography (CT) or magnetic resonance imaging (MRI)
  • High ratio of death caused by cardiovascular diseases and strokes 
  • Frequent staphylococcus occurrence in hospitals
  • Slow implementation of e-prescriptions
Hungary is working to achieve a globally significant position in certain sectors where its infrastructure and know-how are strong, such as clinical trials of new, innovative drugs, and the development of biopharmaceuticals, in-vitro diagnostics, animal biotechnology, bio-refineries, and the use of bioreactors.  The historically strong Hungarian pharmaceutical industry has an established knowledge base and skilled workforce that enabled the creation of a red biotech subsector adept at developing therapeutics, unique in the CEE region yet also strong by international comparison. Therapy development has become more important as more and more original research technology/service provider companies started their own product development programs.  Key representatives of international biotech companies present on the market include Richter, Egis, Amgen, Cyclolab, Omixon, Biogen, Servier, Solvo Biotechnology etc.  Hungarian biotechnology companies have also expanded their presence into the major European markets.  The expansion is supported by the Government of Hungary since the National Research, Development and Innovation Office regards biotechnology as a strategic area to develop. Significant results have been achieved in nanotechnology, molecular chemistry and biotechnology services.  Red biotechnology – also known as biopharmaceuticals - is a prosperous sector and market players are seeking opportunities to intensify their activity in the international arena.  The Hungarian Biotech Association plays a key role in initiating biotech researches.  Prominent Hungarian universities such as Budapest Medical University (SOTE) and Universities of Debrecen, Pecs and Szeged have active relationship with international biotech research companies including GE Healthcare or Siemens. The majority of medical equipment suppliers in Hungary are EU-based manufacturers (primarily German, Italian, and French). Major U.S. medical technology suppliers, such as GE Healthcare, Medtronic, Johnson & Johnson, and Becton Dickinson also have direct representations or subsidiaries in Hungary.  U.S. medical device exporters to Hungary have around 7% of import market share. Most promising subsectors are biomedical devices; cancer and other diagnostic devices; imaging technologies and dental equipment. Investments in new medical equipment within the private health care sector are expected to continue to increase.
Economic growth and an increase in health spending have resulted in a strong demand for medical device imports in 2018.   Imports from the U.S. increased to $151.1mn in 2018.  Overall imports of medical device increased by 1.9 % to $600.1mn in the same period. 
Medical device suppliers could also benefit from a proposal aimed at redeveloping Budapest’s hospitals by 2025. The establishment of three super-hospitals in the city will involve the expansion of existing facilities, the increase not only bed capacities but will result in technology-related advancement, and the refurbishment  inpatient institutions will all help drive market growth.
As a member of the EU, Hungary’s local legislation concerning medical devices complies with EU directives.  More information can be found at the European Commission’s DG Health & Consumers, Public Health, Medical Devices:  ec.europa.eu/health/medical-devices/index_en.htm

A foreign producer that wishes to export medical devices into Hungary must first establish a contract with a local importer, who can help the company fulfill regulations such as the CE mark, Declaration of Conformity, and translation of directions and manuals into the Hungarian language.  Medical devices and pharmaceuticals are subject to a customs duty and VAT of 27%.  The amount of duty for medical equipment exported from the United States ranges according to a specific Harmonized Schedule (HS) code, ranges between  3-11%.

Annual local production was  valued at $914 million in 2018 and consists mainly of electro-medical equipment, blood pressure equipment, TENS instruments, apnea alarms, incubators, infusion pumps, diagnostic, mechanical medical supplies, dental supplies and specialized x-ray and IVD equipment.  Local production and imports generally complement each other. 
Opportunities
Hungary has excellent market opportunities in the fields of sophisticated health technologies and equipment, dental care equipment and many other devices that increase efficiency and reduce occupancy rates in hospitals. Products with the best sales potential in Hungary include but are not limited to:
  • Electronic Medical Records (EMR) systems
  • Patient monitoring systems
  • Mini invasive surgery (MIS) and day surgery equipment
  • Ambulance cars and related equipment
  • CT and MRI equipment
  • Video endoscopes
  • Digital image processing
  • Picture archiving 
     
Main Competitors
Hungary’s medical device manufacturing sector is skilled yet remains relatively small.   Thus, more than 70% of the Hungarian medical device market is dominated by imports mainly from the European Union markets such as Germany, France, Italy, and the UK.  Direct imports from the United States account for around 9%.   High quality and technically sophisticated U.S. medical equipment has the best market potential in Hungary, especially equipment that increases efficiency and reduces occupancy rates in hospitals.  

Barriers

Hospital debts pose a threat to medical sales in Hungary. In beginning of 2019 the Hungarian hospitals accumulated a debt worth of $ 137  million. According to the Medical Chamber the situation resulted in staff not getting paid for months and more than 50,000 patients waiting in line for cancer treatments.
Medical device and pharmaceutical importers sometimes face problems obtaining approval to be placed on insurance reimbursement lists – something that is also a challenge in other Central and Eastern European countries.  If a product is not included on the reimbursement scheme paid by insurance companies, the market for the product is limited.  The catalog of reimbursed operations, medical aids and pharmaceuticals is reevaluated every six months.  Drug categorization takes place on bi-monthly basis.  Drug price referencing is executed twice yearly.
Among OECD countries, Hungary is experiencing a decline in the number of available nurses.  While in 2010 there were 7.44 nurses per 1000 inhabitants, three years later this number dropped to 5.75 (OECD average is 9.09).  Inferior working conditions in hospitals, low salaries, and inconvenient new legal regulations directly stimulate dissatisfaction amongst Hungarian healthcare personnel.
Web Resource
Hungarian Association of Medical Devices
Central Statistical Office
Hungarian Association of Pharmaceutical Wholesalers
Hungarian Hospital Association
National Healthcare Services Center
Association of Innovative Pharmaceuticals Manufacturers

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.