Zentiva is one of the leading manufacturers of high-quality and aff ordable medicines. It supplies over 23 million packages of medication to the Czech market annually, and one in fi ve prescription medicines in domestic pharmacies comes from Zentiva. Boris Sananes has headed it in the Czech Republic for more than a year. Although he comes from France, he has lived in Prague for over ten years and will surprise you with his almost fl awless Czech. What challenges has the pharmaceutical industry faced in recent years? Why are there drug shortages?
How would you evaluate the past year from the position of Zentiva’s director for the Czech Republic?
In the context of world events, it is undoubtedly very turbulent. Two pandemic years were followed by the war in Ukraine, which brought new challenges, and we moved from one crisis to the next. It continues to show us the extent to which European pharmaceutical production is dependent on imports of raw materials from Asia. The conflict has disrupted transport routes through Russia. As a result, delivery times have been extended, and we have experienced further problems in supply chains. High energy prices and inflation have added to this. We are not in an easy position, but we are doing our utmost with the management at Zentiva to get through this crisis and meet our commitments to patients. We are launching an average of fifteen new products a year, helping expand access to modern treatments.
How do energy prices and infl ation affect your company?
Quite fundamentally, and in several aspects. Our production is located in Dolní Měcholupy, Prague. A large part of the production process is energy-intensive and requires, for example, process heat. Our costs in Prague alone were more than 200% higher last year than in the previous year. Most of Zentiva’s portfolio, which comprises 195 diff erent medicines in the Czech Republic in the form of tablets, ointments or injections, are prescription drugs. The state regulates the price of such products, and we cannot reflect the increased cost in the price. We have to absorb these extra costs internally. For the time being, we are managing this through cost-saving measures or production optimisation. But unless we gain more flexibility concerning regulations, we cannot guarantee that we will be able to maintain production of the entire portfolio for all the countries to which we supply medicines.
Does this mean that there could be further drug shortages?
The generic pharmaceutical industry has been facing intense pressure to decrease prices for a long time across Europe. In some EU countries, this is going so far that it is not worthwhile for manufacturers to supply the market. We have seen this, for example, in Germany, where the only manufacturer of children’s ibuprofen has withdrawn from the market for these reasons. Mothers suddenly had nothing to give their ill children. Zentiva came to the rescue, and we are now the most important supplier to the German market.
Our production lines in Prague run 24/7 to meet the demand. So these scenarios are real, and the problem has been there for a long time, but now it is much more visible and needs to be addressed. We, the pharmaceutical industry as a whole, are talking to the representatives of regulatory authorities and the state through our professional associations. We are trying to find a way forward together.
So should the Czech patient be worried?
I can speak for Zentiva. For us, the Czech market and maintaining the portfolio of products we supply to the market is a priority. We are a global company, but our headquarters are in Prague. The company’s management stands behind the Czech market, and we have demonstrated this commitment, for example, during the pandemic. We responded to the shortage of fever-reducing drugs, and, at the request of the Ministry of Health, we started to produce and supply the domestic market. As a result, demand was less than expected. Paradoxically, we were then left with large stocks. But we were proud to be able to contribute and respond to the urgent need. Zentiva is in the Czech Republic, and we are willing to help. We can quickly bring a solution to the Czech patient if we have the raw materials and packaging materials.
What do you see as crucial for the sustainability of the Czech healthcare system?
We could talk about this topic for a long time and discuss prices and policies. What I see as most important is that each of us takes responsibility for our health. After all, we are all patients, and by going to the GP for regular check-ups, we can prevent the development of disease and avoid having difficult patients who cost a lot of money to treat. It all starts with us and our responsibility.
Thank you for the interview.
