France to cut drug prices

France to cut drug prices

As the Marketletter was going to press, and only hours after the French drug industry association SNIP had called for a significant increase in reimbursable drug spending to cover disease sectors said to lack adequate therapeutic provision, the government was moving to cut drug prices amid concern over the social security budget.

Labor Minister Elisabeth Guigou, faced with a 10.7% rise in drug spending last year, was set to announce a cut in drug prices. The products affected were said to be almost entirely those highlighted in an official report on "ineffective" drugs (see page 10) and the cuts are expected to generate economies of 3-4 billion French francs ($387-$516 million). The move is expected to allow the government to set a moderate growth limit on overall health service spending, though few observers believed the targets would be achieved.