Italy To Cut Drug Prices 2.5% Across The Board

Italy's long-announced and controversial 2.5% across-the-board cut in drug prices is about to take effect. Last week, the interministry policy-making body Cipe gave it the go-ahead.

The measure, which is part of the 1995 financial bill aimed at cutting the state deficit by 50,000 billion lire ($30.8 billion), should produce a 450 billion lire ($277.3 million) saving in public health spending. It takes effect five days after publication in the official gazette but must first be examined by the national administrative court. The provision has met with strong opposition from the pharmaceutical industry, with some companies on the verge of civil disobedience. However, says Health Minister Raffaele Costa, the price cut was due to be introduced on January 1995, and each day of delay costs the state some 1 billion lire.

Besides the 2.5% across-the-board price cut, the measure imposes a further 2.5% price reduction for products in the A and B categories (free or partially free to patients under the public health system) produced by companies whose turnover rose 10% or more in the first half of 1995 over first-half 1993. Cipe has also readmitted to the A and B categories 29 specialties which had been excluded.