Austrian pharmacy liberalization call

The liberalization of the Austrian pharmacy sector with the legal possibility of setting up chains could lead to a reduction in drug prices of up to 20% in the medium term, according to a study from the market research organization Kreutzer Fischer & Partner. Its report suggests that savings could also be made on the wholesale margin, which is currently around 10%. In the USA, where pharmacy chains account for 40% of pharmacy drug sales, the wholesale margin is around 3%.

However, most Austrian pharmacists regard the idea of chains as a daunting scenario and they support the retention of the legal position which matches that operating in Germany in imposing a bar on foreign companies setting up outlets.

The market research report rejects the argument made by pharmacists that chains would be unable to guarantee nationwide coverage or that the delivery of drugs with professional advice to patients could not be assured. It notes that American pharmacy chains are in fact able to control the operation of their outlets in considerable detail with prescription-only drugs being supplied only by licensed pharmacists. Opening times are also tightly regulated. The report estimates that each Austrian currently spends 70 euros a year on drugs on average. However, net prices in the UK and France are about 50% below those in Austria