# Presentation: 696136

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

## 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.** **

## 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

##  Medical Device Market

- Source: OECD, 2005

-    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.

## 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)

## 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.

**Notes:**
The Czech dental sector is small and highly competitive.  Neighboring European companies (especially German) dominate, and there is a strong local Czech competition in providing dental furniture.  Despite these competitive pressures, the falling U.S. dollar makes U.S. dental equipment more competitive.  Key selling factors include price and availability of financing.  U.S. companies will need to find local agents or distributors to develop strong personal relationships in order to sell in this market.  

## 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

**Notes:**
The Czech laboratory market is very competitive in the area of laboratory plastics and glass, where European companies hold strong positions. The best products for U.S. companies appear to be in the areas of biotechnology, materials, and medical devices. 

## Biotechnology market

***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, Plzeň and České Budějovice.

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

**Notes:**
The Czech Republic has a long tradition of cutting-edge scientific research, and this heritage of innovation is evident in the contemporary Czech economy. History certainly plays a role in the Czech Republic’s expertise in the biotechnology field—this, after all, is the land where Gregor Mendel conducted his famous research into the mechanics of heredity, Milan Hasek discovered the phenomenon of immunological tolerance, and master brewers made discoveries that changed the art of beer making forever. Today, with the growing interest in promoting innovation and investment in this important sector, the Czech Republic offers U.S. biotech companies good opportunities not only for sales of their products, but also for joint research and development projects 

## 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

## 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

## Thank you

**Ms. Veronika Novakova**
- Commercial Specialist* *
- US Commercial Service, US Embassy
- Trziste 15, 118 01 Praha 1, Czech Republic
- Phone: +420 257 022 437, Fax: +420 257 022 810
- E-mail: _Veronika.Novakova@mail.doc.gov_
- _[www.](http://www.buyusa.gov/czechrepublic)__[buyusa](http://www.buyusa.gov/czechrepublic)__[.](http://www.buyusa.gov/czechrepublic)__[gov](http://www.buyusa.gov/czechrepublic)__[/](http://www.buyusa.gov/czechrepublic)__[czechrepublic](http://www.buyusa.gov/czechrepublic)_