A new drug decree reducing reimbursement aiming to safe c3% from the total drug spending (CZK2bn) should come into force today. In addition, degressive margins are introduced at pharmacies (i.e. higher margin at lower price drugs). Several original drug producers mentioned that they will be lowering their drug prices.
Our view: As mentioned earlier, while the new reimbursement system may have a negative impact on the whole domestic pharma market it should together with the degressive margins favour generic drug producers such as Zentiva.