Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
The Czech Republic has become the center-ground for another
battle over transparency of confidential pharmaceutical prices
after health minister Adam Vojtěch last month ordered state
hospitals to reveal the prices that they paid for medicines in
tenders. Local media reported that net prices from tenders have
indeed started to seep into the public domain after the minister
stated that hospitals should comply with all appropriate
legislation in providing the information on prices, despite the
fact that these are covered by confidentiality agreements. In
response, a branch of French pharma major Sanofi stated that the
company would have to consider ceasing supplies if the hospital
continues to disclose unit prices of Sanofi products.
The source cited examples of the discounts provided to Czech
state hospitals in tenders showed that manufacturers are offering
discounts on some products that reduce the ultimate price to less
than a third of the list price. There is concern that some
essential medicines could be temporarily unavailable in Czech state
hospitals if the dispute is not resolved quickly, and this involves
mainly medicines still under patent protection. Jakub
Dvořáček, the head of the Association of Innovative
Pharmaceutical Industry (AIFP), is quoted as saying that producers
are willing to provide details of discounted tender prices directly
to the minister, although they do not want them published in the
register of contracts.
The danger of an impasse and a temporary interruption in the
supply of essential, new-generation medicines to Czech state
hospitals is very real. For some producers represented by the AIFP,
the risk of these prices being revealed is too great in terms of
the effect that this would have on larger, economically wealthier
markets, such as Germany, as a result of international reference
pricing. The Ministry of Health and the pharmaceutical companies
are in negotiations, and have stated that they hope to reach a
compromise by the end of October. Although confidential discounts
are certainly an imperfect system, and lead to discrepancies in the
amounts paid by different purchasers, the Czech authorities may
soon find out that this imperfect system is nevertheless better
than the alternatives.
IHS Markit has recently launched its new competitive tendering
tool, ProcureIntel. Demos are
available so you can see what the Czech market looks like.
Posted 17 October 2018 by Brendan Melck, Senior Research Analyst, Life Sciences, IHS Markit