The Dutch pharmaceutical industry is very much divided over the government's proposed drug pricing legislation (Marketletter October 30), and is at a loss as to what it should do, reports the Marketletter's Dutch correspondent. Earlier in the year, the national industry association Nefarma promised to come up with an alternative to the government's plan (Marketletter July 24), but so far has failed to do so.
The proposed legislation (the Wet Geneesmiddelenprijzen - WGP) would set maximum prices for drugs in the Netherlands based on an international comparison; according to the government, prices are considerably higher in the Netherlands than in other EU countries. On behalf of the industry, Rotterdam professor of European law B H Ter Kuile has examined the WGP in light of European regulations, and he believes that the legislation would violate both the rights of pharmaceutical manufacturers in the Netherlands and the principles of the EU.
Effects On Wholesalers A few very important manufacturers, namely Organon, Duphar and Yamanouchi, led by MSD, have organized themselves to fight the proposals. However, it is the large wholesalers which are likely to suffer in particular if the WGP becomes law. Brocacef, which last year accounted for 25% of the Dutch pharmaceutical market, is currently declining in importance, and while the largest wholesaler, the pharmacist-owned cooperative OPG, with 40% of the market, does not appear to be in any difficulties, its international alliance initiative has not proved successful, comments the Marketletter's correspondent. Interpharm, which represents 17% of Dutch wholesale business, is still doing very well, and recently acquired the parallel importer Stephar. However, under the WGP, parallel imports are expected to decline in importance.
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