Spain reduces drug reimbursements

The Spanish government has adopted a regulation that reduces the reimbursement level for 136 drugs, effective March 1 this year.

The new price regime was introduced following the enactment of the Socialist government's price control proposals (Marketletter February 27, 2006). The new regulation enforces a 20% cut in prices for drugs where lower-than-reference price generic equivalents exist within the European Union. Further cuts can be made in future years or until the reference price is met.

A spokesman for the Spanish Ministry of Health told the Marketletter that the government expects to save 640.0 million euros ($832.6 million) in fiscal 2007 as a result of the price cuts. Bentley Pharmaceutical, a US specialty drugmaker said that the new regime would have cost 10%-15% of its Spanish business, had it been implemented last year.