Investment Fears Over Dutch drug Price Law

The new pharmaceutical pricing law which is to be introduced in the Netherlands next year, with the aim of saving around 700 million guilders ($457 million) a year, shows that the government has "tunnel vision" in its view of the health budget by focusing only on pharmaceuticals, according to the industry association nefarma.

The association says the government is seeking to cut drug prices by 20%-30%. But, it points out, Dutch per capita spending on drugs and medicines is among the lowest in Europe, and it warns of the serious consequences which the law would have for industry investment in the country. Across Europe, only 60% of pharmaceutical industry capacity is currently being utilized, and investments are only being made in the sector in countries whose governments are actively encouraging drug industry activity, it says.

Effects Of Industry/Govt Dialogue Elsewhere in Europe Nefarma calls for a more intense dialog between the Dutch government and the industry, as has been the case in many of its neighboring European countries including the UK (see page 13), Germany, France and Belgium, where such negotiations have led to pricing incentives for the development of truly innovative products and exports.