Exports will be the key driver of growth for Czech pharma, says BMI

Disputes between pharmaceutical industry associations and the Czech government have created uncertainty for Business Monitor International’s pharmaceutical expenditure forecast scenario. By extension, this has added to the level of risk associated with the Czech market due to uncertainty surrounding the continuation or addition of further drug pricing reforms.

While BMI maintains its already pessimistic growth figure for 2011, it notes that the outlook will remain unclear until the Czech government passes or delays its latest pricing reforms, pointing out that the new measures seem to have encountered further delays as announcements expected in early March 2011 have yet to be made at the time of publication.

In late January 2011, the Czech Association of Innovative Pharmaceutical Industry (AIFP) met with the government to discuss the latest bill on further pharmaceutical price reductions and reimbursements. The new bill has now been submitted for government approval, but faces extensive industry opposition which may delay its adoption. The AIFP has said the current proposals are contrary to the Czech constitution as well as European Union legislation. The industry association stated that the bill's adoption would further aggravate the already volatile and unpredictable drug pricing and reimbursement environment.