The president of the Dutch Court of Justice, dealing with wholesaler OPG's bid to get the drug price law (WGP: Marketletters July 29 and April 8) suspended, has said that while he is not prepared to go that far, Health Minister Els Borst is obliged to try to reach an understanding with the parties concerned to lower prices. This should lead to the abolition of the law as soon as possible, he said.
The suit has been brought by OPG and its subsidiaries Pharmachemie (generics) and Polyfarma (parallel imports) and the generics maker Dumex, which say the law threatens their existence. If Ms Borst makes no attempt to reach agreement with them, and decides to implement the law for a second period of six months, the companies say they could return to court.
OPG reported net profits up 6% in the year to April 30 (Marketletter August 12), largely due to acquisitions, as the profitability of core production, trading, wholesale and distribution activities was under pressure as a result of the price law, which has reduced drug prices by 20%. Although the law only took effect on June 1 of this year, OPG was obliged to offer bigger discounts earlier this year as competition grew and pharmacists reduced stocks in anticipation of the WGP.
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