LEEM says French drug market set to slow down

The French drug industry association (LEEM) has expressed its willingness to help out the country's social security system, which is plagued by sizeable budget deficits, but not "blindly" as in the past, according to the group's president, Christian Lajoux. Instead of the previously-attempted price cuts, new taxes and de-reimbursement program of 2004-2005, he proposes better use of generic drugs and campaigns to promote the improved utilization of prescription medicines. Mr Lajoux was speaking on the occasion of the launch of the LEEM's annual review of the pharmaceutical sector in Neuilly-sur-Seine, near Paris.

The LEEM considers that the outlook for pharmaceuticals in France, while still attractive compared with some other economic sectors, is one of decelerated growth to 4% for the 12 months to April this year for reimbursible non-hospital prescribing. In-patient spending is likely to grow more due to the arrival of new products, accounting for a total rise in turnover for the French market of 4%-4.5% for the whole of 2008. By the end of the year, downward pressure on out-patient prescribing is expected to result in a 3% expansion of the sector.

Worry over shift from traditional strengths