OPG Slams Dutch drug Price Reduction

Dutch pharmacist-owned wholesale cooperative OPG has attacked Health Minister Els Borst's plan to cut drug prices in the New Year by 15%-20% in order to establish maximum prices in line with average levels elsewhere in Europe. OPG's special reserve fund, created in anticipation of a drastic change in the market, has reduced forecast net profits for 1994-5 from 65.5 million guilders to 30.1 million guilders ($19.4 million).

The legislation will affect drugmakers as well as wholesalers, since it will be based on the prices at which pharmacies buy in their stocks. OPG believes this will affect about 70% of consolidated sales, worth 1.5 billion guilders out of gross trading volume of 1.7 billion guilders, and says job losses cannot be ruled out.