French Family-Owned Drugmakers Consider Future

The waves being made in the European drug sector have revived questions about the future of the smaller, family-owned drug companies in France. Some of these companies have now cast aside their normal reticence because they are reportedly discontented with their treatment by the government in the framework agreements introduced on volumes and prices. A total of 21 out of 30 of these independent drugmakers has formed an new grouping, the Association of Independent French Laboratories (Alfi) in the sector.

Jean-Francois Rougaignon, president of Alfi and of the firm Theramex, says there is no intention of seceding from SNIP, the national organization, but rather that Alfi will provide a structure for "reflection and analysis" and give a force behind the sector's proposals. Alfi is positioning itself for the second round of the discussions over drug sales policy.

The framework agreement of January 1994 signed by SNIP and the government expires at the end of 1996, and a new contract has to be negotiated shortly. Alfi wants the minister responsible for small and medium-sized French companies to be given a seat within the Economic Committee on Drugs, which negotiates with the pharmaceutical industry on behalf of the government, and to generate government support for the smaller drugmakers through a system of international credit development, with credits being paid in the event of success.