1/ 2007 Supplement of Czech Business and Trade CZECH Chemical and Pharmaceutical Industry CZECH CHEMICAL AND PHARMACEUTICAL INDUSTRY CZECH CHEMICAL AND PHARMACEUTICAL INDUSTRY Chemical and Supplement of: Czech Business and Trade 01-02/2007 Pharmaceutical CONTENTS: INTRODUCTION 3 Chemical and Pharmaceutical Industry on the Rise Industry on the Rise ANALYSIS 4 Current Situation and Future Prospects of the Pharmaceutical Industry 5 Irreplaceable Role of the Chemical Industry Karel Tureček, Ministry of Industry and Trade, LEGISLATION e-mail: [email protected], www.mpo.cz 8 The Impact of REACH on Czech Chemical Industry and Trade 8 Czech Technology Platform for Sustainable Chemistry INVESTMENT 10 The Czech Republic, a Foundation for Top Biotechnological Research We come across chemical products in every aspect of our lives. This branch is truly a key segment of the Czech EDUCATION manufacturing industry. The year 2005 was favourable 12 Education of Young Pharmacists and Researchers in the Czech Republic for the Czech chemical and pharmaceutical industry. In WE ARE INTRODUCING comparison with previous years, revenue from the sale 14 Leader on the Pharmaceutical Market of the industries’ own products and services (in constant ENTERPRISE prices) increased by more than 13 %. The figure 16 Walmark Aspires to Become Europe’s Largest Dietary Supplement Manufacturer showing labour productivity from book added value rose CZECH TOP by nearly 7 % year-on-year, while the number of 18 Improving the Quality of Life employees increased by only 1.3 %. 20 Lovochemie Boosts Czech Agriculture 22 Specialist in the Manufacture of Active Pharmaceutical Ingredients Exports and Imports RESEARCH & DEVELOPMENT This branch also did well in terms of trade exchange. 23 Czech Chemical Research in the Course of History 24 Important Manufacturing Processes from the Laboratory of a Czech Chemist Exports of chemical products in 2005 rose by 21.5 % in 25 New Opportunities for Biotechnology comparison with the previous year and for the first time SURVEY in the history of the Czech Republic exceeded the EUR 26 Poll of Successful Companies Operating in the Chemical and Pharmaceutical Industries 3.5 billion mark. Imports rose by 12.3 % to EUR 6.4 billion, somewhat less, nonetheless, the impact of INFORMATION 30 Exhibitions and Fairs in the Area of Chemistry and Pharmacy in the Czech Republic in 2007 exchange rates resulted in a slight deepening of the 30 Important Contacts branch’s trade deficit, by approx. EUR 55 million on a year-on-year basis. The Czech Republic’s joining the EU PRESENTATION OF COMPANIES: caused no serious problems in the chemical industry; on 2 Spolek pro chemickou a hutní výrobu, a.s. 15 RosenPharma a.s. the contrary, it enabled this country to increase its trade 17 WALMARK, a.s. exchange with the EU25. For illustration: in 2005 the 19 Interpharma Praha, a.s. 31 Enaspol a.s. EU25 accounted for more than 78 % of the 32 Zentiva, a.s. CR’s chemical exports and for more than 80 % of its Ing. Petr Švec – PENTA; BRAINWAY Inc. s.r.o.; IREL, spol. s r.o.; Lučební závody Draslovka a.s. Kolín; imports. BOCHEMIE s.r.o.; AVEFLOR, a.s.; SAVONIA s.r.o.; GEOTEK, spol. s r.o. MK ČR E 6379 Investment in the Chemical Industry This magazine is published as a supplement to the economic bi-monthly issued in English The chemical industry is one of the most demanding (Czech Business and Trade), German (Wirtschaft und Handel in der Tschechischen branches in terms of capital investment, and in view of Republik), French (Industrie et commerce tchèques), Spanish (Empresas y negocios en la its complicated production processes and technologies, República Checa), and Russian (óe¯cÍafl Úop„o‚Îfl Ë Ôe‰ÔËÌËÏaÚeθcÚ‚o). it requires a highly skilled workforce and considerable Managing Editor: Jana Vápeníková investment in research and development. The annual Editor: Naďa Vávrová volume of gross investment in recent years ranges Graphic Design: Helena Dvořáková, Miloslav Bucvan around EUR 300-330 million, which shows a rate of Address: PP Agency, s.r.o., Myslíkova 25 investment in the CR much lower than that common in 110 00 Praha 1, Czech Republic other developed western countries. In the CR investment Phone: +420 221 406 623, 221 406 626 Fax: +420 224 934 383 amounts to just 1 %, while in the old EU states this E-mail: [email protected] figure ranges between 3 and 4 %. The largest www.ppagency.cz investment projects completed in the CR in the past two www.mpo.cz/cbt years include two new modern plants of Spolchemie: Deadline: 24/11/2006 one for the production of low-molecular resins and the Attitudes expressed by the authors of articles in this magazine are not necessarily other for the production of non-saturated polyester and consistent with the viewpoint of the Publisher. alkyd resins, all of the highest world standard. Another PP Agency important project is the intensification of aniline Company with the ISO 9001 certified quality management system for publishing services production in BorsodChem – MCHZ, which ranks the CR Cover photo: www.photocombo.cz 3 | ANALYSIS among the world’s leading manu- indicators of the branch in 2006 shows the latest prognosis of the European facturers of this important commodity. that the growth rate will not be as high Chemical Industry Council of June 2006, Moreover, the sale of the licence for this as in the previous two years. This is not which foresees output of the chemical production by BC-MCHZ to Japan is only attributable to the high prices of industry in the EU25 to grow by 2.6 % in considered a great success. crude oil, oil products and energy, but 2006 in comparison to 2.4 % in 2005. In also to the slower growth of demand in 2007, the growth rate is expected to Future Development Europe. In spite of this, the prospects for drop to 2.2 %. of the Branch the chemical industry are mostly The development of the main industrial optimistic, as illustrated, for example, by I Current Situation and Future Prospects of the Pharmaceutical Industry Milan Dráždil, Ministry of Industry and Trade, e-mail: [email protected], www.mpo.cz The pharmaceutical industry (NACE on the receiving end of foreign capital, cheaper than elsewhere on the 24.4) is a category of fine chemistry, its mainly American, British, Swiss, and continent, as most of them are generics. typical feature being the high degree of Croatian investment. This has As regards health protection, the sector valorization of basic raw materials. The undoubtedly helped raise their remains continuously in the centre of added value in drugs and substances is competitiveness on both the Czech and investor interest. This is reflected in the based on technologies that require foreign markets. large number of investment projects, demanding research and development According to expert estimates, nearly which have already been completed and a skilled labour force. The EUR 2.15 billion was spent on medicines or are being implemented by pharmaceutical industry is divided into in the CR in 2005, and this volume pharmaceutical companies such as two product groups – the manufacture continues to rise year after year. ZENTIVA, WALMARK, FARMAK, of basic pharmaceutical products (NACE Between 2002 and 2004, medicinal CHEMOPHARMA, BIOVETA, PLIVA- 24.41) and the manufacture of final expenses grew year-on-year by 10 %, LACHEMA, SYNTHON, and others. pharmaceutical preparations (NACE while in 2005 the growth was only half To draw a comparison, it is interesting 24.42), represented in the CR mainly by that figure. The CR holds a leading to note that in 2000 this sector generics. In 2005, for example, class position in Europe in the number of daily employed more than 477 000 people in 24.42 accounted for more than 72 % of doses. In terms of money spent on the EU15, less than 2 % of the EU the sector’s total revenue. drugs, however, the CR ranks lower on manufacturing industry (in the CR this the European scale. Drugs in the CR are was only 0.74 % in 2005). In the EU, Current Situation in the Sector In 2005, the Czech pharmaceutical industry accounted for 16.8 % of total revenue in the chemical industry (NACE Basic indicators of sector 24.4 in the period 2000–2005 24), for 25 % of the industry’s book Million EUR/persons 2000 2002 2004 2005* 05/04 (in %) added value and for 23.7 % of the Revenues from the sale of own number of employees. In terms of the products (const. prices) 407 604 709 857 120.9 manufacturing industry as a whole, this Number of persons employed 6 567 8100 9177 9955 108.5 sector accounts for approx. 0.9 % of Exports (current prices, CPA) 272 319 437 563 128.8 revenue, for approx. 1.5 % of book Imports (current prices, CPA) 844 1168 1551 1726 112.3 added value and for approx. 0.7 % of Labour productivity based on book the number of employees. added value (const. prices) in EUR thous. A total 46 business entities with 20 or per employee 25.6 32.0 27.9 31.6 113.3 more employees are currently operating in this sector. In the past few years, most * estimate CPA – Classification of Products by Activity Czech pharmaceutical firms have been Source: Czech Statistical Office, calculation of the Ministry of Industry and Trade | 4 CZECH CHEMICAL AND PHARMACEUTICAL INDUSTRY too, large firms with 250 or more the chemical industry. It is necessary to pharmaceutical products is minimal in employees dominate the sector, by keep in mind, however, that in terms of most significant economies. Future generating 80 % of total book added NACE calculations, i.e.