French Report Warns Of Generics Price War

France should promote the development of generic drugs but avoid a price war by limiting the level at which the generic's price is set below the original drug. These are the main conclusions of a report submitted to the government by Jean Marmot, president of the economic committee on drugs, the CEM (Marketletter May 13).

The report envisages a generic's price falling eventually to 30% below that of the original product, but Prof Marmot adds that "by way of encouragement," during the transition period in which the market is developed the price should be only 20% below. Some generics now sell at 50% below the original's price.

Prof Marmot notes that, on the evidence available, the economies expected from generics will not be sufficient to offset the heavy charges incurred by the drug industry in launching new drugs expected in the near future. If the health funds are to gain economies linked to a growing recourse to generics, then it is essential that "health care professionals are not penalized."