[e-drug] Drug Pricing policies in Spain

E-drug: Drug Pricing policies in Spain
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[Reprinted under the fair use doctrine of international copyright law, KM]

     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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