Dutch Wholesale/ Industry Price Dispute

28 July 1996

The Netherlands' largest pharmaceutical wholesaler, OPG, is currently in dispute with a number of drug manufacturers over prices.

The problem arose as an indirect result of the new drug price law (WGP: Marketletter April 8), which took effect on June 1. Since then, wholesalers and manufacturers have had to negotiate an adjustment to the wholesaler's margin. Under the law, there is no longer a difference in prices to the public between drug specialties, generics and parallel imports.

Just before July 1, the day on which the new prices were introduced, Merck Sharp & Dohme said it would be reducing the wholesalers' margin from 17% to 6%, a cut of 40%. OPG responded by announcing the end of its cooperation with MSD, and said it would be reducing the number of MSD products which it is willing to distribute.

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