Nefarma Plan To Head Off Dutch Drug Pricing Law

23 July 1995

In a clear bid to stop the Dutch government implementing draconian measures on pharmaceutical pricing, the drug industry association Nefarma has put forward an alternative pricing scheme, which could result in savings of some 675 million guilders (431.9 million) or just a little less than the 700 million guilders for which the government plan (Marketletter June 19) was aiming.

Nefarma, which represents around 90% of research-based pharmaceutical companies in the Netherlands, is proposing that drug price reductions of between 10% and 25% would provide the 675 million guilders savings, and further cost reductions could be achieved by greater market deregulation, reports the newspaper Het Financieele Dagblad.

The government plan, as previously reported, is scheduled to be discussed at cabinet level in the near future, and implemented on January 1, 1996. Among its main points it is understood that there is a proposal for a maximum price at which a registered drug can be sold, and it would be illegal to sell a product at a price higher than that designated. It also contains provisions for a fine up to 100,000 guilders per delivery if the law is contravened.

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