Italy's drug market hit buy corruption cases

The Italian pharmaceutical market, hit by a recent corruption scandal and government-imposed price cuts, faces plans to liberalize the over-the-counter sector, according to a report by the Ireland-based analyst firm, Research and Markets. Despite these developments, the firm maintains its previous forecast of growth from about $30.0 billion at present, to $36.6 billion by 2010.

The fall-out of the Recordati scandal, involving Italy's largest drugmaker, included the loss of 10% of its market valuation and the temporary suspension of trading in the firm's shares. The scandal erupted in July last year when three Recordati executives were arrested on bribery charges. Later in the year, investigations led to the revoking of marketing authorizations of 11 generic products.

Meanwhile, figures released by the Italian Medicines Agency (AIFA) showed that Italian public sector spending on drugs grew 9.2% in the first eight months of 2006. The rise was the result of the approval of several innovative products on the Prontuario reimbursement formulary.