Czech Drug Spending Hits Record Levels in 2004

According to official statistics, drug spending in the Czech Republic reached record levels in 2004, rising 7% year-on-year to CZK56bn (US$2.43bn). Local drug regulator SUKL notes that the OTC and partially reimbursable market accounted for 20% of total spending in the year, as some OTC medicines are eligible for 15% reimbursement by the country's health insurance system.

Further, SUKL also highlights the fact that while unit volume has remained largely stable since 1992 at roughly 330mn packs, expenditure on drugs has continued to rise. It is likely that rising consumer demand may have driven the increase, as the traditionally high-tech cardiovascular and central nervous system sectors continued to lead the market in 2004, with sales respectively totalling CZK10.9bn (US$472.85mn) and CZK6.6bn (US$286.26mn).

Earlier figures for the January-September 2004 period indicated a year-on-year spending rise of 4.5%, implying that market growth accelerated in the final quarter. Local drugmakers accounted for some 36% of unit sales, although at the time officials reported that low-cost drug sales were slowing due to the economic impact of European Union (EU) integration.