The new Ministry of Health decree assumes to lower margins for pharmacies by 3% and lower reimbursements by 5% against 2005. As GP's are having maximum limits placed on what they can spend on treatment, 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 original drug producers and their pricing strategy. The new decree may have a gradual and slightly positive impact on Zentiva's share price. We reiterate our Buy recommendation.