2013-08-25 09:12:41 - New Healthcare research report from Business Monitor International is now available from Fast Market Research
The Ministry of Health's decision to reimburse the state insurer more for taking on expensive patients suggests state favouritism, but given the VzP's longer list of high-risk patients, it is understandable. The fact that private insurers have not diversified their pools of patients has meant that the most demanding patients have ended up with the VzP, contributing to its significant debts. The insurance system must draw from other European countries, where risk is equalised to ensure coverage for all patients.
Headline Expenditure Projections
* Pharmaceuticals: CZK79.60bn (US$4.07bn) in 2012 to CZK82.68bn (US$4.04bn) in 2013; 3.9% in local currency terms and -0.8% in US dollar terms.
* Healthcare: CZK278.34bn (US$14.23bn) in 2012 to CZK284.58bn (US$13.90bn) in 2013; +2.2% in local currency terms
and -2.4% in US dollar terms
Risk/Reward Rating: Despite leading our regional RRR table, drugmakers will face challenges in the Czech pharmaceutical market as a result of pricing pressure, poor access to the market and increasing generic substitution. Additionally, adopted and proposed amendments to healthcare and insurance laws have attracted criticism from the pharmaceutical sector.
Full Report Details at
- www.fastmr.com/prod/670556_czech_republic_pharmaceuticals_health ..
Key Trends And Developments
* In June 2013, it was reported that the Czech Ministry of Health is working on a new system of collecting insurance premiums that will primarily benefit the state-run insurer General Health Insurance (VzP), which has the most expensive patients on its books. Presumably, privately run health insurers have not been underwriting policies for the highest-risk patients or have demanded high premiums for coverage. As a result, patients unable to afford the coverage have turned to the state insurer.
* In June 2013, it was reported that the number of antibiotics prescribed annually by Czech doctors has reached around 70 tonnes, which is equivalent to 15mn packages per year. However, increasing antibiotic resistance accounts for around 25,000 deaths every year across Europe. Around 25% of Escherichia coli strains and nearly 50% of Klebsiella pneumoniae strains in the Czech Republic have become resistant to antibiotics, according to Czech microbiologist Vaclav Adamkova. Experts believe that few antibiotics are left that will work against these super-strains of bacteria, and those that do work are being used in everincreasing quantities, further driving resistance.
BMI Economic View: While coincident economic indicators for the Czech Republic continue to indicate sustained weakness in the domestic economy, the improvement in eurozone manufacturing PMI's - particularly with major trade partners such as Germany - points to a potential recovery in economic activity this year. We maintain our forecast for real GDP growth of 0.5% in 2013, rising to 1.9% in 2014.
BMI Political View: We believe that the election of Milos Zeman to president of the Czech Republic is likely to restore a degree of political stability to the country. We see Zeman as a more unifying figure than his predecessor, Vaclav Klaus, and expect Zeman will find more common ground on foreign policy with current and future administrations.
Report Table of Contents:
BMI Industry View
- Business Environment
- Pharmaceutical Market Forecast
- Table: Czech Pharmaceutical Sales, Historical Data And Forecasts
- Healthcare Market Forecast
- Table: Czech Healthcare Expenditure Trends, Historical Data And Forecasts
- Table: Czech Government Healthcare Expenditure Trends, Historical Data And Forecasts
- Table: Czech Private Healthcare Expenditure Trends, Historical Data And Forecasts
- Prescription Drug Market Forecast
- Table: Czech Prescription Drug Market Indicators, Historical Data And Forecasts
- Patented Drug Market Forecast
- Table: Czech Patented Drug Market Indicators, Historical Data And Forecasts
- Generic Drug Market Forecast
- Table: Czech Generics Drug Market Indicators, Historical Data And Forecasts
- OTC Medicine Market Forecast
- Table: Czech Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts
- Pharmaceutical Trade
- Table: Czech Pharmaceutical Trade Data And Forecasts (US$mn)
- Table: Czech Pharmaceutical Trade Data And Forecasts (CZKmn)
- Other Healthcare Data
- Key Risks To BMI's Forecast Scenario
- Macroeconomic Forecast
Industry Risk Reward Ratings
- Central and Eastern Europe Risk/Reward Ratings
- Czech Republic Risk/Reward Ratings
Industry Trends And Developments
- Table: European VAT Rates On Medicines (%)
- Table: Retail Pharmacy Market Overview, 2004-2010
- Zentiva (Sanofi)
- Bristol-Myers Squibb
- Demographic Outlook
- Table: The Czech Republic's Population By Age Group, 1990-2020 ('000)
- Table: The Czech Republic's Population By Age Group, 1990-2020 (% of total)
- Table: The Czech Republic's Key Population Ratios, 1990-2020
- Table: The Czech Republic's Rural And Urban Population, 1990-2020
- Pharmaceutical Expenditure Forecast Model
- Healthcare Expenditure Forecast Model
- Notes On Methodology
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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
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