Strengthening pharmaceutical self-sufficiency in the Czech Republic: A path to healthcare security

In recent years, pharmaceutical self-sufficiency has become a pressing issue for the Czech Republic, and indeed for all of Europe. With growing dependence on imported medicines and key components, such as active pharmaceutical ingredients (APIs), the Czech healthcare system is increasingly vulnerable to geopolitical and economic risks. Strengthening local pharmaceutical production is not just a matter of economic strategy; it’s vital for the sustainability of healthcare and the protection of patients.

The Czech Republic, like many European countries, relies heavily on imported medicines and APIs. According to the Czech Association of Pharmaceutical Companies (ČAFF), a significant portion of these raw materials comes from Asia, particularly China and India. This heavy reliance exposes the country to potential disruptions in the supply chain, whether due to political instability, natural disasters, or other geopolitical events. Currently, only one-third of the APIs required by the Czech pharmaceutical industry are produced within the EU, while the rest is sourced from Asia. This reliance marks a stark contrast to the situation in 2000 when Europe produced nearly 66 % of the required pharmaceutical ingredients.

Investing in research and development: A key to greater self-sufficiency

One of the most effective strategies to address the country’s dependency on imported medicines is to ramp up research and development (R&D) in the pharmaceutical sector. Between 2010 and 2020, Czech pharmaceutical companies invested an average of CZK 60 million annually in R&D, ranking 8th among Czech manufacturing industries. Despite this, R&D spending remains a relatively small percentage of overall profits, highlighting the need for greater investment to drive innovation and production capacity.

Oncomed manufacturing is an active player in this effort, working alongside key academic institutions such as the Secondary Industrial School of Chemistry (SPŠCH), Brno University of Technology (VUT), Masaryk University (MUNI), and the Faculty of Pharmacy (FaF). By collaborating on strategic initiatives and co-creating the LifeSciences 4.0 platform, oncomed is helping to foster a stronger pharmaceutical ecosystem in the Czech Republic and the broader region.

Radek Fialka, Commercial Director and Board Member of oncomed manufacturing, explains: “Together with our partners, we are helping to create an environment where pharmaceutical innovation can thrive. The LifeSciences 4.0 platform is rapidly becoming a respected force within the Czech and broader European life sciences landscape.”

Key barriers to pharmaceutical self-sufficiency

Several obstacles currently hinder the Czech Republic’s ability to achieve greater pharmaceutical self-sufficiency. Chief among these is the ongoing dependency on imported APIs, with most of these raw materials sourced from Asia. This reliance is compounded by high energy costs in Europe, which makes local production less competitive.

Additionally, European regulatory systems put downward pressure on drug prices, which can drive R&D activities abroad where companies have the potential for higher profits. As a result, the availability of certain medicines, especially those with limited suppliers, has decreased. While drug prices are capped, their growth has not kept pace with inflation, leading to financial strain on Czech manufacturers.

The COVID-19 pandemic further exacerbated these issues, with shipping times for intercontinental deliveries increasing by as much as four times. Although some delays have eased, supply chains have not fully returned to pre-pandemic levels.

Strategies to improve pharmaceutical self-sufficiency

To increase pharmaceutical self-sufficiency in the Czech Republic, several key measures are needed. The first step is to adjust the maximum drug prices, which would allow manufacturers to cover the costs of production and distribution, particularly for the cheapest medicinal products. Additionally, a revision of health insurance reimbursements is necessary. If the government wants to maintain current patient co-payment levels, it would need to increase reimbursements from insurance companies to prevent changes in out-of-pocket costs.

Another important step is ensuring greater self-sufficiency within the EU, including the Czech Republic, in the production of medicines and active ingredients. This requires European and national support to expand the production capacity for off-patent medicines.
Moreover, simplifying the procedures for approving the import of foreign-language batches and registering medicines is essential to reduce administrative burdens. Streamlining the approval process for drugs and their modifications is also key to speeding up the process and improving production efficiency.

The path forward: National and EU collaboration

Achieving pharmaceutical self-sufficiency is not only a matter of national security but also essential for ensuring the health of citizens. The European Union must recognize the urgency of this issue and take steps to enhance local drug production capabilities.

Radek Fialka underscores the importance of collaboration: “No EU country—except perhaps Switzerland—can independently meet its pharmaceutical needs across all indications. The only way forward for the Czech Republic is through collaboration within the EU. Global partnerships, while preserving domestic innovation, will allow us to maintain a capacity to supply critical medicines during geopolitical or natural crises.”

Fragmented national interests have previously hindered EU-wide efforts, but a unified approach could help Europe play a stronger role in the global pharmaceutical market. The time for protectionism and isolationism has passed; only through collaboration can Europe ensure that its pharmaceutical needs are met while safeguarding domestic innovation.

Conclusion

Building a stronger pharmaceutical industry in the Czech Republic is essential for securing the nation’s healthcare system. By investing in R&D, improving production capacity, and fostering collaboration both within the EU and globally, the Czech Republic can reduce its dependence on imported medicines and build a more resilient healthcare future. This is not just an economic necessity—it is a critical step in ensuring the long-term health and security of Czech citizens and the broader European population.