HEALTH CARE SECTOR OPPORTUNITIES Czech Republic presented by Veronika Novakova Commercial Specialist

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HEALTH CARE SECTOR OPPORTUNITIESCzech Republic
presented byVeronika NovakovaCommercial
SpecialistPrague, Czech Republic
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Czech Republic

• Central location
• Population 10.247 mil.
• Area 78,886 sq.km
• Counties 14
• GDP per cap. 11,939
• Average Monthly Wage 865
• Unemployment Rate 7.9
• Inflation rate 1.6
• Industries
• Auto, Machinery, Electronics, Beer, etc.

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Healthcare in the CR

• High quality but very costly to the government
  (need for reform)
  
• Mandatory insurance (9 employer, 4.5 employee)
  covers 80 of total HC expenditures,
  out-of-pocket payments are only 7
  
• Aging population - Life Expectancy Males - 72.6
  years Females 79.4 years
  
• The most common causes of death 1/ diseases of
  circulatory systems, 2/ malignant neoplasm
  
• The number of sick days is one of the highest in
  Europe

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Medical Device Market

• Competitive market with a good potential for
  innovative and state of art technologies
  
• Hospitals almost 200 in the country, mostly
  under jurisdiction of regions, exception are
  teaching hospitals, only about 10 percent is
  private (Agel)

• Best prospects Diagnostic and therapeutic
  devices - Cardiosurgery, cardiology, oncology,
  neurosurgery, gynecology, orthopedics,
  haemodialysis, laboratory technique and tests,
  Active Implants - stimulators, pumps, sphincters,
  penile protheses, artificial organs, portable
  dialysis machines, Passive Implants - artificial
  articulation, spinal implants, Consumable
  supplies - Common consumables for surgery.

Source OECD, 2005
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Drugs Pharmaceuticals

• Czechs are big consumers of pharmaceutical
  products
  
• Strong position of generic drugs in the market
  (Zentiva company)
  
• Vitamins Nutraceuticals Highly competitive
  market (rise in custom duties for US supplements
  after entering EU, decrease to 0 in EU)
  
• The vast majority of pharmacies are in private
  hands. In 2003, there were 1,938 pharmacies and
  201 dispensaries registered
  
• Trends self-medication (especially young
  generation), informed customers in cities
  unlikely to remain faithful to brands, spending
  power on rise, growth in supplements popularity,
  demand for consultation services in the
  pharmacies (x supermarket sales)

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Dental Equipment

• Dental sector in the CR is small and
  competitive (strong European companies) but
  offers good potential for new and innovative
  products

• The insurance system covers all standard
  services (amalgan filling, basic endodontic
  treatment, etc.) but patients must copletely pay
  for all the other procedures (cosmetic fillings,
  implants, non-basic treatments)
• The number of dentists is expected to fall as
  the number of dentists who retire is higher than
  number of graduates. In 2002, there were 7,645
  registered dentists. The population per active
  dentist was 1,514. Less than 1 of dentists work
  completely outside the system of health
  insurance, in fully private practice.

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Laboratory device

• The Czech laboratory instrumentation market is
  comprised of about 250 importers and distributors
  representing over 1,500 manufacturers, most of
  the companies in the laboratory sector are small
  and medium-sized companies

• The Czech market is cost sensitive but offers
  good sales prospects,
  
• especially for more advanced products
• There is estimated almost 1,000 labs in the
  Czech Republic
  

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Biotechnology market

• a long tradition of cutting-edge scientific
  research,
  
• heritage of innovation is evident in the
  contemporary
  
• Czech economy

• a strong network of academic and research
  institutions in the life sciences area, out of
  294,082 total Czech university students,
  approximately 256,777 are enrolled at life
  science universities
• The main centers of biotechnology, molecular
  biology, and pharmaceutical research and
  development are located in Prague and other major
  Czech cities Brno, Olomouc, Hradec Králové,
  Plzen and Ceské Budejovice.

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HC Market Challenges

• Late payments especially in case of hospitals,
  in some cases delay in payment may be over 1
  year
  
• Product Registration all the products have to
  be registered in the Czech Republic
  
• Reimbursement challenging problem especially
  in pharmaceutical sector where calls for
  transparency led to complaint filed with the
  European Union

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HC Market Opportunities

• International Clinical Research Center (ICRC)
  Brno project has been officially launched in
  2006, the center is to create platform for an new
  type of international scientific partnership, US
  Mayo Clinic is one of the most important project
  partners
• ICRC Brno estimated costs are around 75 mln.

• Hradec Kralove Region is looking into
  opportunities to attract HC research and
  companies to the region, it can offer strong base
  of three medical faculties, e.g. US company Arrow
  has its plant there

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Thank you
Ms. Veronika Novakova Commercial Specialist US
Commercial Service, US Embassy
Trziste 15, 118 01 Praha 1, Czech Republic
Phone [phone], Fax [phone]
E-mail Veronika.Novakova_at_mail.doc.gov
www.buyusa.gov/czechrepublic