SB Fears New Generics Prices War In France

UK drugmaker SmithKline Beecham has indicated its concern over arevived generics prices war on the French pharmaceutical market. SB triggered a general lowering of amoxicillin prices some 12 months ago (Marketletter October 14, 1996) by cutting the price of its Clamoxyl brand by 38%.

The strategy now appears to be under threat, with the impending publication (due December 8, ie after the Marketletter went to press), of a new list of generic drugs intended to persuade doctors to reduce the French drugs bill.

The list will comprise generics or equivalent drugs covering all the main therapeutic categories and highlight the low-cost items. SB sources say this could turn doctors off Clamoxyl. However, the original price cut led generics producers to try to close the gap to some extent, and the average difference between the cost of Clamoxyl treatment and other amoxicillins at present is estimated to be less than 10%, with a maximum 18% difference for the best-selling presentation of the SB drug, ie is 500mg gel formulation.