Italy's Farmindustria Says "Cut Drug Prices, We Quit"

Italy's pharmaceutical industry association, Farmindustria, has come out with further strong reaction to proposals by the government to slash health spending in the 1996 budget.

Farmindustria has said that "if there are further cuts in drug prices, we will have no alternative but to leave the national health service system." This is being taken to mean an end to the supply of drugs and medicines for reimbursement to the health service. The statement by the industry association comes on top of protests by doctors over plans to charge patients through the "ticket" system (patient copayment) for a first medical visit.

The government has been floating the suggestion that prices of drug products in the official list or Prontuario could be cut by 2.5% - a proposal that Farmindustria says would crucify the Italian pharmaceutical industry. Since 1992, the prices of listed drugs have declined by 20% while inflation has risen at 17% in the same period. And the industry has shed 10,000 jobs in this period.