Over the past five years, more than sixty medicines have ceased to be supplied to the Czech Republic, either temporarily or permanently, primarily due to low prices or inadequate reimbursements, according to statistics from the State Institute for Drug Control. This represents a small fraction of over one thousand reports of supply interruptions for production reasons.

Despite the official stance from the Ministry of Health and the Drug Institute that they do not influence price setting, pharmaceutical companies and pharmacists assert that the push to maintain low prices contributes significantly to the disappearance of medicines from the Czech market.

The Czech Association of Pharmaceutical Companies has identified numerous groups of medicines with low prices and limited alternatives, making them susceptible to shortages that may not be promptly resolved. These groups encompass vital medications for conditions such as hypertension, antibiotics, pain relief, and cholesterol management, often priced at a few dozen Czech crowns.

An analysis of data from the National Drug Institute reveals that, in nine out of ten cases, shortages occurred for medicines offered by only three companies in the Czech Republic. Any issues faced by one or two of these companies can lead to noticeable shortages.

To address this problem, the Czech Association of Pharmaceutical Companies suggests incentivizing new companies to enter the Czech market. While cases where manufacturers struggle with the maximum allowable price for medicine in the Czech Republic are rare, they have doubled in the last two years.

Low prices and reimbursement concerns have been cited as reasons for the interruption or termination of supplies for essential medicines, including those without substitutes, such as treatments for patients with Parkinson’s disease. In some instances, individual imports from abroad have been necessary to prevent patients from going without treatment.

Deputy Minister of Health Jakub Dvořáček emphasizes that if a price increase serves the public interest, it should not pose a problem. Minister of Health Vlastimil Válek underscores that while the price is not the sole factor contributing to medicine shortages, the pressure to achieve the lowest possible prices has exacerbated these issues over the past two decades.

As Europe prepares for rising generic drug costs, the reform of EU medicine laws aims to improve accessibility but has faced criticism in its initial proposal.

The ongoing challenge of securing a stable supply of essential medicines underscores the complex interplay between pricing, production, and the healthcare system’s broader dynamics.

Article by Prague Forum