The Pharmaceutical Market: Czech Republic


The recent measures proposed by the Czech Republic\'s Ministry of Health will, in all likelihood, negatively affect the Czech pharmaceutical market. The introduction of reimbursement ceilings, blind bidding auctions and preferential prescribing will squeeze drugmakers\' margins and shift some of the burden of healthcare spending onto the private sector. The outcome of similar measures in Hungary and Poland strongly supports our view that the business environment for drugmakers will worsen if these proposals are adopted. It is patients who, ultimately, will suffer.

Headline Expenditure Projections

Pharmaceuticals: CZK80.71bn (US$4.56bn) in 2011 to CZK79.76bn (US$4.2bn) in 2012; -1.2% in local currency terms and -7.1% in US dollar terms.

Healthcare: CZK298.49bn (US$16.88bn) in 2011 to CZK297.87bn (US$15.831bn) in 2012; +0.4% in local currency terms and -8.4% in US dollar terms.

Medical Devices: CZK26.51n (US$1.50bn) in 2011 to CZK26.91bn (US$1.43bn) in 2012; +1.5% in local currency terms and -4.6% in US dollar terms. Forecast moderat ely down due to macroeconomic factors.


Risk/Reward Rating

The Czech Republic retains its leading position in the CEE RRRs in Q113, after displacing Poland in our Q412 assessment. Despite leading in our regional RRR table, the outlook for growth for the Czech pharmaceutical market is not particularly robust, as a result of pricing pressure, impeded market entry and increasing generic substitution. An increase in VAT and a stringent reference pricing system have affected sales and hit manufacturers\' margins respectively.

Competitive Landscape

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors

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Table of Contents

Hospital Sector 28

Research & Development Sector 29

Clinical Trials 30

Medical Devices 31

Industry Forecast Scenario 33

Overall Market Forecast 33
Table: Czech Pharmaceutical Sales, Historical Data And Forecasts 34

Key Growth Factors - Industry 35
Table: Czech Healthcare Expenditure Trends, Historical Data And Forecasts 36
Table: Czech Government Healthcare Expenditure Trends, Historical Data And Forecasts 37
Table: Czech Private Healthcare Expenditure Trends, Historical Data And Forecasts 37

Key Growth Factors - Macroeconomic 38

Prescription Drug Market Forecast 42
Table: Czech Prescription Drug Market Indicators, Historical Data and Forecasts 43

Patented Drug Market Forecast 44
Table: Czech Patented Drug Market Indicators, Historical Data and Forecasts 45

Generic Drug Market Forecast 46
Table: Czech Generics Drug Market Indicators, Historical Data and Forecasts 46


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