In an effort to reduce pharmaceutical expenditure, the Greek government has recently introduced a new pricing policy for pharmaceutical products. The new provisions on pricing of pharmaceuticals were introduced by market decree 2 of March 31 2010.
According to the new pricing regulations, prices of originator products are based on the threelowest reference prices in all EU states for which official data is available. Under the new system these prices will be reviewed and updated 3 times a year. After patent expiry, prices of original products are reduced by 20%.
Generic products are priced up to a maximum of 72% of the respective price which the original medicinal product had during patent validity. Following patent expiry, the price of the generics will be set up to a maximum of 90% of the respective original product.
According to the Minister of Development the new regulations, which will affect the price of all medicines in the market, are expected to lower the prices by 20% to 25%. Under the former regime, generics were priced only at a 20% discount to the originators price, thus resulting, according to the Minister, in Greece being the third most expensive country in the world in generics.
The re-calculation of the price of all products in the market has proven to be a very difficult task causing a great delay in the issuance of the new price bulletin. Under pressure to take immediate action in price cuts, the Ministry issued a provisional price bulletin, with a flat reduction of prices. This however, has caused great concern to originator pharmaceutical companies who fear that reductions applied incorrectly may never be re-adjusted and may even result in drug shortages on the domestic market since low prices may fuel parallel exports. Legal action has been taken by an originator company who is challenging the price bulletin before the Supreme Court.
The impact of the new pricing regulations to the innovator and generic pharmaceutical industries in Greece should become clearer in the next few months.
|
Constantinos Kilimiris |
Patrinos & Kilimiris
7, Hatziyianni Mexi Str.
GR-11528 Athens, Greece
Tel: +30210 7222906, 7222050
Fax: +30210 7222889
