Final Word from Thursday, October 13, 2005
Two major events are taking place in Czech healthcare. First, Jiří Paroubek is about to install President David Rath of the Medical Chamber as health minister, to replace the sacked Milada Emmerová. Rath has long been known for his influence over the ministry's drug-categorization commission. Second, PPF is in the process of taking control of Zentiva. PPF now owns more than 20% of the generic-drug maker and has apparently agreed with Warburg Pincus to boost this to more than 40%. PPF said yesterday that it can't rule out taking a majority. Zentiva has 32% of the drug market by volume but only 14% in monetary terms. Rath has said repeatedly that the key to resolving the healthcare problem is decreasing the amount spent on drugs. This means buying more generics. And this is where the two major events in healthcare come together so smoothly.[Czech Republic pharmaceutical pharmaceutics]