New Market Report: Czech Republic Pharmaceuticals & Healthcare Report Q2 2013

From: Fast Market Research, Inc.
Published: Thu Jun 27 2013

The Czech pharmaceutical market is the most developed in terms of spending and ease of operation in the Central and Eastern European region, but it continues to present challenges for drugmakers. Price erosion by regulatory agencies and blind bidding auctions drive prices down year-onyear. The open movement of goods and services in the European Union has given rise to an arbitrage opportunity for medicines, which certain businesses have exploited. While within the letter of the law, the impact of parallel exports is felt by patients, who have reported shortages of vital medicines. This worrying trend is being seen across Central and Eastern Europe. We highlight the need for a comprehensive, coherent and fair drug pricing strategy within the EU to disincentivise the practice and ensure steady supplies of medicines to patients across the bloc.

Full Report Details at

Headline Expenditure Projections

* Pharmaceuticals: CZK79.76bn (US$4.08bn) in 2012 to CZK82.16bn (US$4.01bn) in 2013; 3.00% in local currency terms and -1.6% in US dollar terms.
* Healthcare: CZK302.31bn (US$15.46bn) in 2012 to CZK313.53bn (US$15.31bn) in 2013; +3.7% in local currency terms and -0.9% in US dollar terms.

Risk/Reward Rating: The Czech Republic's Pharmaceutical Risk/Reward Rating (RRR) score for Q213 is unchanged from the previous quarter. This is also the case for all other countries in BMI's proprietary system that ranks pharmaceutical markets according to attractiveness to multinational drugmakers. A minor re-weighting of one of the RRR components is being implemented to improve the tool, and the adjusted scores for all markets will be published in the Q313 updates of the Pharmaceuticals & Healthcare reports.

Key Trends And Developments

In February 2013, the Prague Daily Monitor reported that an increase in parallel exports from the Czech Republic has put some 300 medicines into short supply in the country. Medicines are bought by wholesalers in bulk and shipped over the border to Germany, where the same medicines command a much higher retail price.

In December 2012, Czech Minister of Health Leos Heger announced 14 proposals to bridge future deficits in the health insurance system and ensure long-term stability. The suggestions covered every sector involved in healthcare provision: insurance companies, hospitals, medical device makers and pharmaceutical companies. The proposals, four of which are more important than the other suggested reforms, were especially harsh towards drugmakers at a time when Europe is mired in austerity measures and cuts to public sector spending.

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