BMI View: The Czech Republic will continue to be one of the most attractive markets in the CEE region for pharmaceutical and healthcare investment. A strong economic outlook will be the driving factor behind growt h and with plans to further increase access to healthcare , pharmaceutical sales are expected to increase over the coming years.
Headline Expenditure Projections
Pharmaceuticals: CZK78.83bn (USD3.02bn) in 2015 to CZK81.15bn (USD3.28bn) in 2016; +3.0 % in local currency terms and +8.7 % in US dollar terms. Forecasts in line with last quarter.
Healthcare: CZK312.52bn (USD11.97bn) in 2015 to CZK325.75bn (USD13.17bn) in 2016; +4.2% in local currency terms and +10.1% in US dollar terms. Forecasts revised upwards from last quarter .
|f = BMI forecast. Source: State Institute for Drug Control (SUKL), World Health Organisation, BMI|
|Pharmaceutical sales, USDbn||3.490||3.020||3.280||3.560||3.920||4.150||4.310|
|Pharmaceutical sales, % of GDP||1.80||1.76||1.77||1.76||1.73||1.70||1.68|
|Pharmaceutical sales, % of health expenditure||25.5||25.2||24.9||24.6||24.3||24.0||23.7|
|Health spending, USDbn||13.660||11.970||13.170||14.480||16.160||17.300||18.220|
In Q3 2016, the Czech Republic Risk/Reward Index (RRI) score has been upgraded from the previous quarter to 65.5 out of 100. The Czech Republic is ranked as the most attractive market to innovative drugmakers in the Central and Eastern European (CEE) region within our RRI matrix. The Czech pharmaceutical market score is driven by high pharmaceutical expenditure per capita, an ageing population and a favourable urban-rural distribution, but dragged down by a challenging pricing and reimbursement environment.
In April, representatives of the Ministries of Health for the Czech Republic, Hungary, Poland and Slovakia announced that they would consider cooperating in a joint purchasing agreement for rare disease medicines.
On April 6 2016, the Minister of Health announced a proposal to provide additional grants to doctors for medical equipment, nurses and salaries for practising in places where care is lacking. The new proposal is aimed at addressing the uneven distribution of healthcare provision around the country.
In March, the Czech Medical Council called on the government to introduce a health tax on alcohol and tobacco products.
BMI Economic View
Due partially to solid economic and employment growth rates, the Czech Republic's public finances will stay healthy in 2016 and 2017. Tax revenues will benefit from strong retail sales, while government borrowing costs will stay low amid record-low interest rates and the country's safe haven status.
BMI Political View
Relations between the Czech Republic and the EU will worsen over the coming quarters. We expect the Czech government to continue to oppose the EU's migrant reallocation system and re-introduce border controls in line with the other Central European states. Moreover, we believe further European integration will stay on hold in the years ahead.
The Czech Republic Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
BMI's Czech Republic Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Czech Republic pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Czech Republic, to test other views - a key input for successful budgeting and strategic business planning in the Czech pharmaceutical and healthcare market.
- Target business opportunities and risks in the Czech pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Czech Republic.
- Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.
BMI Industry View
An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
- Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
- Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
- Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
- OTC Drug Market: OTC sales (USDbn & % of total sales).
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward Index
BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.
The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.