[Pharm-policy] Drug Pricing policies in Spain

[James Love]

---------- Forwarded message ----------
Date: Sun, 26 Mar 2000 18:34:54 -0800
From: Ellen 't Hoen <ethoen@compuserve.com>
To: 'e-drug' <e-drug@usa.healthnet.org>,
     'IP health' <ip-health@venice.essential.org>
Subject: [Ip-health] Drug Pricing policies in Spain



     MADRID Pharmaceutical companies sent reeling by drug-pricing policy in 
     Spain  
     
     Lancet 2000; 355: 1081 - 1084 
     
     
     The Spanish Ministry of Health announced a project on March 16 to 
     contain spending on drugs, which has been increasing rapidly in Spain 
     over the past few years. 
     
     The project is based on a list of 41 generic drugs--or 118 when all 
     dosages and versions of the drugs are included--paid for partly or 
     totally by the National Health Service. Each drug has a reference 
     price which is normally lower than the brand-name equivalent's price. 
     Under the new system, pharmacists must exchange a prescribed branded 
     drug for the generic equivalent if the price of the former is higher 
     than the reference price for that compound. The price of the generic 
     drug chosen by the pharmacist that is dispensed to the patient cannot 
     exceed the reference price. The patient can still get the prescribed 
     brand name product if he or she is to pay the difference. The new 
     pricing system should save at least US$135 million in its first year 
     of use. And savings should increase further in the next few years as, 
     for example, brand-name drug prices are lowered to match their generic 
     equivalents. 
     
     The move has been welcomed by doctors and pharmacists but not by 
     Farmaindustria, the pharmaceutical industry's representative body. The 
     negative economic impact on drug companies is estimated to be about 
     $91 million in the first year. Farmaindustria is awaiting the outcome 
     of an assessment of the impact on the industry before commenting on 
     the new pricing system. 
     
     Xavier Bosch 
     
     


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