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Czech Republic Pharmaceuticals & Healthcare Report Q1 2008 Available Now
DUBLIN, Ireland-(Business Wire)-March 14, 2008 - Research and Markets (http://www.researchandmarkets.com/reports/c85962) has announced the addition of "Czech Republic Pharmaceuticals & Healthcare Report Q1 2008" to their offering.
The Czech Republic Pharmaceuticals and Healthcare Report provides independent forecasts and competitive intelligence on the Czech Republics pharmaceuticals and healthcare industry.
The drug market in the Czech Republic is showing promise, although local generics producers may struggle to cash in, in the short-term. BMI forecasts a compound growth rate (CAGR) of 6.84% for 2007-2012. However, recent reforms have targeted older generic drugs, as the authorities attempts to constrain costs. Leading local producer Zentiva recorded a disappointing performance in the Czech Republic in H107, with sales receding 5.6% to CZK2,226mn (US$115.08mn), although BMI remains bullish about the firms prospects in the medium to long term.
Meanwhile, after much political machination, the government has managed to push through its reform agenda, which includes a programme of tax cuts aimed at slashing the country's large fiscal burden. Reforms include the adoption of a flat-rate system for both income and corporate tax, which will eventually stand at 15% and 19% respectively. At the same time, value-added tax (VAT) will be raised to 9% from 5%. With regards to the country's welfare system, reductions in child benefits and parental contributions will be introduced, as well as patient fees for doctor visits and hospital stays. BMI expects health expenditure to reach US$19bn by 2012, or equivalent to 8% of GDP. Although low by Western European standards, it is quite high compared with its immediate neighbours. The fiscally conservative administration is also likely to usher in a significant shift away from state health expenditure in favour of private providers.
The Czech Republic comes in second place in our revamped Business Environment Rankings. Its position is mainly due to the strength of the drug market, with per-capita spending forecast to reach US$305.4 for 2007. Patent protection, however, is a long-standing problem in the Czech Republic, due to the industry policy under the previous Communist government, which did not recognise patents on many end-products and local production of copies of Western medicines. The country's EU membership and the adoption of pharmaceutical directives have at least in theory eased many problems related to drug copying.
For more information, visit http://www.researchandmarkets.com/reports/c85962.
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