Shock French price cuts for effective drugs "will cost industry $116

The French government has drawn up a list of medicines, the prices ofwhich it intends to reduce by between 2% and 20%. Drug price reductions have been expected for months in France, but it was widely forecast that the policy would be applied only to the 800-plus products on the market already identified as less effective (see also page 11).

However, the shock for international drug manufacturers with a strong French market presence is that, for the first time, the new list involves effective treatments. The reasoning behind the reductions is that these efficacious drugs are too expensive or heavily prescribed.

Labor Minister Elisabeth Guigou and Health Secretary Bernard Kouchner announced the list as social security budget details were being published. Noel Renaudin, president of the economic committee on health products, the CEPS, has sent 15 major pharmaceutical manufacturers a list of their products scheduled for price reductions, including details of the precise cuts proposed. Levels of reimbursement will not be affected.