Hungary: Industry View On Free Drugs

In Hungary, the Association of International PharmaceuticalManufacturers has proposed that a set amount be allocated by the state to finance the purchase of drugs by the most needy, instead of the list of drugs which they now receive free, reports MTI Econews. The list excludes hormonal and osteoporosis treatments, and some types of diabetes medication.

In 1996, the 5% of the population entitled to free drugs accounted for 18% of total spending on drug price subsidies. Their drug costs averaged three times more than those prescribed for other people. The upper monthly income limit for free drug eligibility is now 9,500 forint ($55.10).

The AIPM's 37 members accounted for 73% of Hungary's 100 billion forint ($5.56 billion) drugs market in 1996. Imports represented 57% of the market by value and 22% by volume. Hungarian companies produced 40% and packaged a further 12% of the 118 million packs of drugs sold in Hungary last year. Imports represented 45% of the 73 billion forint sales of AIPM members in Hungary in 1996, and Hungarian manufacturers produced 12 billion forint worth of drugs under license from AIPM members.