Problems For Greek Drugmakers Continue

Less than two months ago, the Greek government succumbed to pressure from pharmaceutical companies to allow drug price hikes, reacting to shortages of essential medicines that multinationals were not supplying because of the unrealistically-low prices they were permitted to levy (Marketlettter August 5).

Part of the reason for the government's capitulation was the result of declining domestic production. A recent article by Christos Korfiatis in the Greek newspaper To Vima, noted that manufacturing facilities are now either lying idle or are used just to carry out packing operations.

Mr Korfiatis cited the case of Glaxo Wellcome, which had invested some 3.5 billion drachmas ($14.8 million) in "opulent new headquarters" in Greece and has now stopped production in a recently-built manufacturing facility, equipped with the latest technology. This was part of the overall rationalization of Glaxo Wellcome following the merger of the two parts. While the head of the Greek operation, Nicos Manasakis, fought to retain manufacturing at this site, he, reportedly, had to settle for packaging of drugs made in other plants.