BMI View: A strong economic outlook will drive continued growth in both the pharmaceuticals and healthcare markets over the coming years. As a result of the advanced nature of the market, verging on a par with Western European markets, the Czech Republic will remain the one of the most attractive markets in Central and Eastern Europe for multinational drugmakers.
Headline Expenditure Projections
Pharmaceuticals: CZK76.88bn (USD2.94bn) in 2015 to CZK79.75bn (USD3.23bn) in 2016; +3.7% in local currency terms and +8.8 % in US dollar terms. Forecasts revised upwards from last quarter.
Healthcare: CZK312.88bn (USD11.98bn) in 2015 to CZK326.91bn (USD13.12bn) in 2016; +4.5% in local currency terms and +10.4% in US dollar terms. Forecasts revised upwards from last quarter .
|f = BMI forecast. Source: State Institute for Drug Control (SUKL), World Health Organization (WHO), BMI|
|Pharmaceutical sales, USDbn||3.303||2.944||3.228||3.650||4.133||4.336||4.495|
|Pharmaceutical sales, % of GDP||1.71||1.72||1.74||1.74||1.73||1.72||1.71|
|Pharmaceutical sales, % of health expenditure||24.2||24.6||24.4||24.2||24.0||23.8||23.6|
|Health spending, USDbn||13.663||11.981||13.233||15.090||17.231||18.228||19.044|
In Q1 2017, the Czech Republic's Risk/Reward Index (RRI) score, at 65.5 out of 100, is unchanged from the previous quarter. Within our RRI matrix, the Czech Republic is ranked as the most attractive market in the Central and Eastern European (CEE) region to innovative drugmakers. 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 September 2016, the Ministry of Health announced plans to reduce the health insurance contribution for medicines for seniors and children, enabling greater affordability of treatments.
In September 2016, the Ministry of Health discussed changed to the Law on Medicines to prevent re-export of medicines to enable sufficient provision for Czech patients.
On October 2016, the Ministry of Health announced that revenues for the public health insurance system are estimated to increase by around 5% in 2017.
BMI Economic View
The Czech economy is forecast to grow by 2.6% in 2016 and 2.5% in 2017, a significant drop from 2015's 4.3%. The export-oriented industrial sector will be hit by slower economic growth across the eurozone and the UK over the coming quarters. However, household consumption will remain a bright spot and grow robustly on the back of a tightening labour market and surging wages.
BMI Political View
Although the Czech Republic remains a relative bright spot for the European Union in Central Europe, anti-establishment parties will continue to gain traction. The upcoming regional elections in October will be a key testing ground for the ruling Social Democrats, prompting them to increasingly adopt eurosceptic and populist policies .
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.