A new healthcare decree coming into effect in two weeks will allow the sale of OTC (over-the-counter drugs) in supermarkets and filling stations, which may have a positive impact on Zentiva's OTC's drugs, which sales formed 21% on Zentiva's pharmaceutical sales in the 1Q06 and grew by 35% y/y to CZK628m. In addition, a new reimbursement system will come into a force in August assuming lower proportional reimbursement for cheaper drugs and higher for more expensive drugs; the threashold is cCZK965 (EUR34). This may be potentially negative for Zentiva as its drugs are ranking among the cheapest nevertheless we will seek clarifications from the company. In the meantime, we continue to rate Zentiva as Buy.