|
(Last updated: 13 Aug 2012)
Trends and opportunities
The market
Czech Republic is the gateway to the countries of Central and Eastern Europe (CEE) which forms a total market of 302 million people and a combined GDP of A$3.14 trillion (2012) mainly due to its strategic location, well-developed infrastructure, and skilled labour force. Czech Republic is an important regional and international manufacturing hub and consumer market. Many international companies choose the country as a starting point for their endeavours in CEE.
Central & Eastern Europe is composed of a diverse range of markets, all at different stages of development. Markets throughout the region grew very rapidly until 2008, as many countries joined the EU between 2004 and 2007. All healthcare systems are in great demand of renovation and updating, and spending on new diagnostic equipment in particular has been very strong. Most new equipment is imported, as Russia, Poland, the Czech Republic, Ukraine and Hungary represent the five largest purchasing markets in the region. Slovenia is a small market, but has the highest per capita expenditure, in comparison with most of Western Europe.
Regional health expenditure
Total health expenditure for the CEE region is projected to reach an estimated A$313 billion by 2016, equal to 6.7 per cent of GDP. At present, only 29 per cent of spending in the region is private, but over 85 per cent of this is composed of out-of-pocket payments. The area of private healthcare plans remains largely undeveloped within most markets. Slovenia, the wealthiest country per capita in the region, is the only state in which private plans have become a strong feature, representing almost half of total private spending.
Czech Republic
General statistics:
- 197 hospitals, from which 12 state teaching hospitals
- 230 surgical clinics located at the hospitals
- 7.8 per cent of GDP spent on healthcare
- 75 per cent of medical devices are imported
The Czech health and biotechnology market is one of the most developed in CEE, with one of the highest per capita spending levels in the region. The country is home to a number of contract manufacturers and specialist research firms, with a track record of working with foreign companies. The large market has a high and still increasing level of per-capita expenditure with continued steady but unspectacular long-term potential.
Healthcare funding is largely public, and mainly through health insurance. Private spending only accounts for an estimated 17 per cent of total health expenditure in 2011.
Provision of care is also largely public, the Czech Republic has yet to develop a substantial private sector.
In 2010, over-the-counter (OTC) product pharmacy sales in CEE were worth A$12.52 billion, a 13 per cent year on year increase in Euro. Between 2011 and 2013 the market should develop by around nine per cent on average per annum. The growth is driven by continuing self-treatment of minor ailments and loosening of the rules of where OTC products can be sold.
The Czech Republic has considerable biotech sector potential, with a well-established clinical research industry and EU-aligned regulatory infrastructure. The Czech Republic focuses on science and research development: in 2010, A$3.3 billion (seven per cent annual growth) was spent on development of new top R&D centres with focus on quick commercialisation of research results.
The country has a small manufacturing sector. Production is at the low to medium end of the technology scale, but is increasingly of good quality. EU membership has made the CE mark mandatory for local manufacturers. Local producers tend to concentrate on export markets: an estimated 75 per cent of production is exported.
Around 80 per cent of the medical device market is supplied by imports, which have risen rapidly in the past decade. In 2011, 36 per cent were sourced from Germany; other major suppliers were the Netherlands, Belgium, Switzerland and France. In 2011, imports rose by 6.6 per cent over 2010 and by a 2007-2011 CAGR of 8.2 per cent.
In 2011, the Czech market for medical equipment and supplies is estimated at A$1.38 million, or A$132 per capita. The market has proved generally resilient to the economic downturn in 2009, and it is expected that the device market will continue to expand at a CAGR of 4.3 per cent per annum, reaching A$1.71 million, or A$164 per capita, by 2016.
Opportunities
- National ‘smart health system’ – for effective communication between hospitals, doctors, health insurance office(s), patients and pharmacies serving as a governmental tool for supervision and control of effectiveness and correct medical treatment, medical prescription and insurance payments
- Generally the development of private care provision
- Diagnostic imaging
- Hospital management software, niche medical software
- Education – professional training for medical personnel
- Innovative medical equipment with unique selling points (has to be CE certified)
- Aged care facilities – management, construction and products, supplements and services for ageing population
- OTC sector
- New methods and products for prevention, detection and treatment of cancer, skin cancer. Diagnostics, products and medicaments.
- Medical waste management
|