Menarini Set To Quit Italy And Move To Germany

Menarini SpA, Italy's major producer of pharmaceuticals for the domestic market, has rejected government proposals for price cuts in a series of combative public press advertisements, and has announced that it is to quit Italy and switch production to Germany.

The company, which employs some 5,200 people - 3,000 of them in Italy, timed its campaign to coincide with a meeting of the new Italian cabinet called to discuss extra health care reforms.

Menarini says it is not prepared to endure the distorted application of the law on average European pharmacy prices. The application of the legislation in Italy by the last government has "in fact imposed the lowest prices in Europe," it claims. The company adds that it is not prepared to accept a 10% cut in prices and that "instead of calling for a Europeanization that does not arrive," production will be transferred to Germany.