The outgoing Healthcare minister, David Rath, will sign a new drug decree today lowering the final price of the most expensive drugs, which is opposed by the largest pharmaceutical companies.
Our view: the drug reimbursement decree is signed semi-annually. We believe that the decree would reduce the reimbursements on average by several percentage points. We assume that such a move would ultimately benefit generic drug producers such as Zentiva given their lower priced drugs. However, in the short-term, the whole market may come under pressure having negative impact on generic producers too.