French drug spending plan nears completion

The French government's plan for the pharmaceutical sector of the healthservice is nearing completion following a meeting of the Health, Labor, Economy Budget and Industry Ministers. The aim of this project is to apply a brake to the country's drug spending growth.

One feature of the plan is a proposed 3% cut in drug prices in order to reduce the bill for reimbursement. However, the price-cut proposal is not being given absolute priority, according to observers, because of the potentially-excessive damage to the drug industry in France. Ministers are also concerned that, if a price cut was introduced unilaterally, it would mean the end to the existing system of framework agreements between the government and industry.

Some modification of the price-cut proposal is expected to emerge in the form of a graduated lowering of some drug prices, targeting specific product categories and negotiated with the industry on a product-by-product basis. The price reductions are expected to be applied to pharmaceutical products which are sold in large volumes and at high prices, for example antidepressants, some cholesterol-lowering drugs such as the statins, and antibiotics like the cephalosporins and fluoroquinolones. Drugs with dubious efficacy are also forecast to be the target of price cuts.