ODS’s proposed agenda for the new Government also includes proposals to introduce fees for prescriptions, doctors’ visits and lower reimbursement for cheaper drugs while provide reimbursements for more expensive drugs. There should be a cap of CZK3,000 (~EUR107).
Our view: While such measures would certainly have an initially negative impact on the pharmaceutical market as a whole and therefore also on Zentiva’s domestic sales (currently 37% of total pharmaceutical sales), we believe it is still rather too early to adjust our valuation based on these proposals as the shape of new Government is still far from clear. Moreover, we believe that these measures are not acceptable for Social Democrats (CSSD). Therefore, we would view the proposal as neutral for the time being.