Drug prices lowered in French measures

The French government's drug price reduction measures have been applied to some 600 drug products representing about 1.0 billion euros ($1.21 billion) in sales. The cuts were agreed at the end of last year (Marketletters passim). Claude Bouge, deputy director of the drug industry organization LEEM, has said the measures would represent around 978.0 million euros of sales "at least" in a full year.

Three types of reductive measure have been applied. The first is the reduction in prices of a number of generic drugs and branded original pharmaceuticals, which is expected to generate 530.0 million euros for the social security system. A further 15% cut has been applied to some 62 tonics for the treatment of varicose veins.

These products will also see their reimbursement rate reduced from 35% to 15%, with a saving of 158.0 million euros to social security and a loss of about 46.0 million euros to the producer companies. Effective March 1, a total of 158 drug products will be removed from reimbursement on the grounds that their medical benefits are regarded as inadequate. They include expectorants for bronchitis, such as the plant-based agent Exomuc, a number of vitamins and various treatments for aches and pains.