FRENCH PHARMACISTS HIT BY FALL IN RXs

Lower levels of reimbursement in France and the pressure on doctors to cut costs has led to lower drug sales for the 23,000 registered pharmacies there. Since the start of 1994, health care spending growth has slowed considerably. The national French pharmacists' union, the UNPF, says sales have declined by an average of 3% in the first five months of this year.

The union adds that other factors are also causing concern, including increased competition from supermarkets and outlets specializing in over-the-counter pharmacy goods, the ending of wholesaler discounts and, above all, the application of the degressive margin mechanism. This mechanism operates on the basis that the higher the drug price the lower the pharmacy margin.

The pharmacy organizations claim that 1,000 pharmacies are now on the verge of bankruptcy and 3,000 have excessive debt levels. A recent report from Credit National says the prospects for pharmacies appears "compromised." New pay negotiations with the registered pharmacists' unions were announced in mid-May.