Hungarian Drug Prices, Pharmacy Privatization

Retail medicine prices in Hungary were increased by 40% on January 1 following a rise in consumption tax, reports MTI Econews. producer prices of drugs increased by only 14%.

Meantime, the Budapest City Council hopes to make 2.5-3 billion forint ($18-$21.5 million) from the privatization of its 189 city pharmacies, with completion expected by June 30, reports MTI Econews. The Council will receive the proceeds from the sale of the pharmacies' real estate and assets, with revenue from their stocks, estimated at about 1 billion forint, going to the Pharmafontana company which manages the pharmacies and will continue to do so until they are sold.

At the start of 1996 97 pharmacies had been offered in 10 package deals, with sales approved for 64 and sales of 57 completed. Loans to purchasers are being provided by Japanese and german lenders. New owners must operate the pharmacies for at least five years, and the Council has the right to repurchase them for a further five years after that.