The new Ministry may reduce drug reimbursements by a further 2%,starting in February. Note that the drug reimbursements have already been lowered by 5% compared to last year. As GP's are having maximum limits placed on what they can spend on treatments, there may be pressure on them to prescribe cheaper drugs - i.e. generics. We believe that generic producers like Zentiva may benefit from the current situation as it is the largest domestic generic drug producer; nevertheless, the final impact may depend on the response of the non-generic drug producers and their pricing strategy. The lowered reimbursements may have a gradual and slightly positive impact on Zentiva's share price. We reiterate our Buy recommendation.