France's LEEM holds talks with JPMA

The LEEM, France's research-based pharmaceutical industry group, has held a regular meeting with its Japanese counterpart, the Japan  Pharmaceutical Manufacturers Association, in Tokyo, Japan. The December  event was designed to allow both trade representative bodies to exchange  opinions and information on topics of mutual interest. In particular,  the JPMA was interested in the French approach to: the expanded R&D tax  credit; drug reimbursement negotiations between drugmakers and the  government; the market penetration of generics; and the compassionate  use of unapproved drugs. Kenji Toda, who chairs the JPMA's  international affairs committee, said: "we have understood that the  JPMA and [the] LEEM are faced with similar challenges and are moving in  the same direction."

The tax credit system for R&D has been expanded in France to allow 50%  of new investment to be tax deductable in the first year, with 40% in  year two and 30% in year three.

One feature of France's reimbursement system is the presence of  different tiers, which are based on the seriousness of a condition and  the drug's effectiveness. For oncology and HIV/AIDS treatments, the top  rate of 100% subsidy applies. The other levels are 65%, 35% or 0%. In  the past two years, the French authorities have proposed the  "de-reimbursement" of several hundred agents, although some of these  have been deferred due to public pressure (Marketletters passim). A form  of reference pricing is also used in France for reimbursement decisions,  with prices compared in the four other leading European Union markets  (Germany, Italy, the UK and Spain), as well as comparable therapies  available domestically. Drugmakers can negotiate price increases if they  can demonstrate, after five years, that a compound has contributed to  overall health care savings, for example by reducing hospitalizations,  or if the range of approved indications is expanded.