Hungary continues to regulate the pharma market, balancing budget

2007 was a turning point for the pharmaceutical industry in Hungary. The measures introduced by the Pharma Economic Act in January 2007 (Marketletters passim) helped to achieve a balance in the drugs budget for the first time since the early nineties. However they came at the price of a total shock for the sector.

The Act - the first stage of a full scale national health care reform - imposed a 12% mandatory payback system on drugs manufacturers and a 5.0 million forint ($28,905) registration fee for every sales representative. It also changed the criteria for inclusion on the national reimbursement list by reducing the prices for first and consecutive generics and increasing the time frame for innovative drugs.

Full revision of the national reimbursement list also started in 2007 and it will continue in 2008. Broad application of therapeutic reference pricing and fixed reimbursement at the lowest price for the same active ingredients was probably the most painful measure for drugs manufacturers.