Czech Republic Pharmaceuticals and Healthcare Report Q4 2009

The Czech Republic has one of the most developed and technologically advanced pharmaceutical markets in Central & Eastern Europe (CEE). Despite the impact of the economic downturn, BMI believes that Czech medicine sales growth will remain healthy, if not overly impressive, over the next five years, reflecting the country's status as one of the most mature in the region. In 2009, the drug sector is likely to contract in US dollar terms, reaching a value of US$3.74bn, although this is mainly due to exchange rate fluctuations, with BMI forecasting a 2.4% growth in real terms in local currency. Meanwhile, growth should recover in 2010 and we forecast a compound annual growth rate (CAGR) of 5.3% in local currency from 2008-2013, with the market reaching US$5bn.

According to the latest data from the Institute for Health Information and Statistics (UZIS), healthcare spending reached CZK259bn (US$15.2bn) in 2008, representing 7% of GDP. Growth has been rapid in recent years with health expenditure standing at just CZK209bn (US$11.7bn) in 2004. Yet, the burden on the state seems to be decreasing. In 2008, total out-of pocket expenditure on healthcare reached CZK40bn, representing around 15% of total health spending. Of this, the controversial fees for hospital stays, doctor consultations, and prescriptions accounted for CZK5bn (US$279mn).

However, the future of health fees ??