The Czech Republic pharmaceutical market is one of the most attractive markets in Central and Eastern Europe. The availability of cost effective skilled labour, high quality infrastructure and EU harmonious regulations are the main reasons for the fast growth of the Czech pharmaceutical industry. Most local drug manufacturers and distributors are owned by big international pharmaceutical firms. GBI Research valued the Czech pharmaceutical market at $3.1 billion in 2010, which grew with a compound annual growth rate (CAGR) of 11.7% from 2004 to 2010. The Czech healthcare sector will witness many new healthcare reforms in the coming years, with the primary objective of reducing growing drug expenditure. In response to these healthcare policies, the Czech pharmaceutical market is expected to witness a lower growth rate in forecast period.
GBI Research has analyzed that in 2011, generics had a share of over 50% of the Czech pharmaceutical market. Czech government reforms encourage the manufacture and use of generic drugs, in an attempt to limit drug expenditure and provide low cost-effective public healthcare. Government healthcare policies, coupled with numerous active generic manufacturing companies in the country, will increase the share of generics in the market during the forecast period.
The Czech Republic is showing a moderate recovery from the economic downturn in 2009; increased industrial outputs and government structural reforms in various sectors including healthcare have contributed to the growth. GBI Research analyzed that the new healthcare reform policy which is expect to be implemented from 2012, with elements of "standard" and "above standard" care, in which patients pay more for above standard (expensive drugs and services) care and an increase in co-payments from the patients, reduces healthcare affordability for individual patients and will pose a major challenge to the Czech pharmaceutical market.
Scope
Overall pharma, biotech and outsourcing market structure in Czech Republic
Czech Republic pharmaceutical market characterization, including market size, major regulatory bodies, pricing and reimbursement issues, major distribution channel and intellectual property rights.
Czech Republic CRO market growth.
Analysis of the leading segments within the Czech Republic pharmaceutical industry.
Key market drivers and restraints that have a significant impact on the Czech Republic pharmaceutical market.
Competitive benchmarking of leading companies in pharmaceutical and CRO markets.
Key M&A activities and strategic partnership deals that have taken place between 2009 and mid 2011.
Reasons to buy
Develop market entry and market expansion strategies by identifying the leading emerging markets poised for strong growth.
Devise a more tailored country strategy through the understanding of key drivers and barriers of the country's pharmaceutical market.
Develop key strategic initiatives by understanding the key focus areas of leading companies.
Accelerate and strengthen your market position by identifying key companies for mergers, acquisitions and strategic partnerships.
Executive Summary
GBI Research's new report, “Emerging Pharmaceutical Market - Czech Republic - Planned Healthcare Reform Plans Forecast to Slow Growth Rates” provides an in-depth analysis of trends, issues and challenges in the pharmaceutical market in the Czech Republic. The report analyzes the overall pharmaceutical and outsourcing market structure in the Czech Republic. Further to this, the report provides competitive benchmarking for leading companies and analyzes the M&A and strategic partnerships that shape the Czech pharmaceutical market. This report is based on data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research's team of industry experts.
Antineoplastics and Cardiovascular Drugs Account for Approximately One-Third of the Czech Republic Pharmaceutical Market
The Czech Republic pharmaceutical market is dominated by the sales of antineoplastics and cardiovascular drugs. In 2010, antineoplastics accounted for 19% of drug consumption and cardiovascular drugs, for 15% of drugs consumption. Over the past five years spending on cancer drugs has increased significantly, from 14% in 2006, to 19% in 2010 as a result of the increased prevalence of different types of cancers in the Czech Republic. There are currently 80,000 cancer patients in the Czech Republic and this figure is expected to reach 90,100 by 2018, leading to an increase in antineoplastic drug consumption in the coming years. The other major class of drug, cardiovascular drugs, generated a significant proportion of revenue in the Czech pharmaceutical market.
A non-linear trend has been observed in the consumption of cardiovascular drugs in recent years. In 2010, cardiovascular drug revenues constituted 15% of the pharmaceutical market. Sales of these two major classes of drugs contributed to over one-third of the Czech pharmaceutical market. GBI Research forecasted that the use of these specialized classes of drugs would continue to grow during the forecast period, due to the increasing ageing population in the Czech Republic, who are highly susceptible to various cardiovascular diseases and growing cancer incidence rates.
Introduction of New Healthcare Reform Plans by Czech Government would Regulate Country's Drug Expenditure
The Czech Republic's healthcare system is in transition phase, with new reform packages and amendments. The major issue presented to the Czech government is raising healthcare expenditure which recently surpassed 8% of the country's GDP in 2009. The country faced a major financial crisis in 2009 and in an effort to boost the economy; the Czech Republic introduced many new healthcare reforms to limit the expenditure on healthcare, including spending on both drugs and healthcare services. Growth in drug expenditure was confined to 1.3% in 2010 as a result of a reduction in the prices of drugs and reimbursement levels, both key elements in healthcare plans. The 'Janota package', which led to a drop in prices and reimbursement of drugs by 7%, was one of the other key factors. In 2011, the Czech pharmaceutical industry presented a new healthcare reform to restrict the entry of expensive healthcare into the market by imposing stringent regulatory rules. The Czech government plans to divert spending from expensive equipment and medicines and increase salaries of doctors.
The first phase of healthcare plans in the forecast period would effectively be introduced in January 2012, with key elements such as increasing co-payment from patients and extra fees for above standard care (including expensive drugs). It is uncertain whether the reform would raise healthcare funds because a 4% increase in value added tax (VAT), commencing from 2012, would restrict patient affordability for private care and payments for co-payment.
The second phase is expected to start by 2013, with the main areas of target, healthcare insurance system and long term care. Privatization of healthcare services and the reduction of public health insurance companies will be key elements in future healthcare laws. These reforms are likely to affect the affordability of drugs for individual, and the nature in which healthcare is approached, resulting in the regulation of Czech Republic's pharmaceutical market.
The Generics make over 50% Of the Total Pharmaceutical Market Share in Terms of Value and Is Expected to Grow
The Czech Republic pharmaceutical sector is occupied by generic drugs which currently constitute over 50% of the market in terms of value and is expected to increase further during the forecast period. The Czech Republic is experiencing an influx of emerging generic pharmaceutical companies, alongside already established generic pharmaceutical companies, engaged in the manufacture of API's, pharmaceutical preparations and contract manufacturing services. In 2010, retail sales of generic drugs was valued at $1.7 billion in the Czech Republic and this figure is forecasted to grow at a significant rate, as a result of the implementation of new government policies in coming years. The primary aim of these policies is to reduce drug expenses through various healthcare laws, and in particular, the promotion of generic substitution.
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