Hungarian Drug Firms Seek Market Protection

The National Federation of Hungarian Drug Producers and Whole-salers says the system of drug price subsidies must be reformed, or domestic pharmaceutical production will collapse.

Federation chairman Istvan Orban said that imports, whether more modern or not than Hungarian medicines, have flooded the market unrestrictedly in recent years, and that Hungarian drugs' share of sales dropped from 75% in 1988 to below 50% in 1994.

Also, foreign drug price increases have significantly exceeded Hungarian rises. Mr Orban said that due to excessively fast liberalization, the amount of social insurance subsidies doubled in the past three years, while the National Health Insurance Fund budget is limited. This must be stopped, he said; Hungarian drugs which have the same effect but are much cheaper than imported equivalents should be preferred, and subsidies of more expensive drugs limited. He also urged the Hungarian medical community to "help eliminate the admiration of foreign drugs."