http://www.ft.com/intl/cms/s/0/f981cd1e-1e6b-11e5-aa5a-398b2169cf79.html#axzz3eSZQamqC
June 29, 2015 7:00 pm
Pharma industry warns on threat to Greek drug supplies
Andrew Ward, Pharmaceuticals Correspondent
An employee informs customers in a pharmacy of the National Organization for Healthcare Services Provision (EOPYY) how to receive their prescribed medicines, in the centre of Athens, Greece, 08 June 2012. Reports state that on 06 June 2012 that EOPPY announced the disbursement of several expensive pharmaceuticals, particularly anti-cancer medications. The announcement came after heated reactions in recent days as a result of a shortage in the particular drugs, reportedly due to payment disputes. EPA/ALKIS KONSTANTINIDIS©EPA
Customers queue at an Athens pharmacy. Greece has already run up unpaid bills in excess of €1bn with drugmakers
Europe’s pharmaceuticals industry has warned that drug supplies to Greece could be jeopardised if the country leaves the euro, and called for urgent action from Brussels to help prevent shortages.
Greece has run up unpaid bills in excess of €1bn with drugmakers, and the industry wrote to the European Commission on Monday to raise alarm over strains on the country’s pharmaceuticals market.
“In the worst-case scenario of ‘Grexit’, we believe the integrity of the medicines supply chain may be in jeopardy, which would create a risk to public health,” wrote Richard Bergström, director-general of the European Federation of Pharmaceutical Industries and Associations.
His comments will reinforce fears of disruption to supplies of critical products such as medicines and oil if Greece fails to find a way out of its debt crisis.
Mr Bergström warned that the “technical breakdown in infrastructure supporting transactions, uncertainty on the validity of contracts, coupled with general social unrest” could imperil pharmaceuticals supplies in the event of euro exit.
Shortages could be exacerbated by an increased economic incentive for drugs to be exported from Greece, and sold at a higher price in neighbouring markets if the euro is replaced by a sharply depreciated drachma, Mr Bergström said.
Individual drug companies were working on measures to maintain supplies but competition laws made it hard for the industry to come up with a co-ordinated response, he added in his letter to Vytenis Andriukaitis, EU health commissioner, seen by the Financial Times.
Mr Bergström called for an urgent meeting with Mr Andriukaitis and other commissioners to discuss “concrete contingency plans”.
In depth
Greece debt crisis
The Syriza government is facing resistance to its plans to tackle the country’s massive debt burden
In addition to supply risks, drugmakers are also worried that falling prices in Greece could put downward pressure on pricing elsewhere in Europe because of the widely used system of “reference pricing”, under which drug prices in one country are often pegged to those in others.
Mr Bergström urged the commission to seek an agreement among European health ministers that EU members would not use Greece as a reference when setting prices.
Pharmaceuticals manufacturers and patients alike have been hit by sharp cuts in Greek healthcare spending during the country’s financial crisis.
Industry executives and healthcare analysts say the country suffers from an especially inefficient pharmaceuticals market hobbled by the vested interests of hundreds of wholesalers and powerful pharmacists.
This is reflected in among the lowest penetration of off-patent generic drugs in Europe because these interest groups have favoured more pricey branded medicines. The European Commission has been pressing Athens to tackle this problem as part of its economic reforms.
June 29, 2015 7:00 pm
Pharma industry warns on threat to Greek drug supplies
Andrew Ward, Pharmaceuticals Correspondent
An employee informs customers in a pharmacy of the National Organization for Healthcare Services Provision (EOPYY) how to receive their prescribed medicines, in the centre of Athens, Greece, 08 June 2012. Reports state that on 06 June 2012 that EOPPY announced the disbursement of several expensive pharmaceuticals, particularly anti-cancer medications. The announcement came after heated reactions in recent days as a result of a shortage in the particular drugs, reportedly due to payment disputes. EPA/ALKIS KONSTANTINIDIS©EPA
Customers queue at an Athens pharmacy. Greece has already run up unpaid bills in excess of €1bn with drugmakers
Europe’s pharmaceuticals industry has warned that drug supplies to Greece could be jeopardised if the country leaves the euro, and called for urgent action from Brussels to help prevent shortages.
Greece has run up unpaid bills in excess of €1bn with drugmakers, and the industry wrote to the European Commission on Monday to raise alarm over strains on the country’s pharmaceuticals market.
“In the worst-case scenario of ‘Grexit’, we believe the integrity of the medicines supply chain may be in jeopardy, which would create a risk to public health,” wrote Richard Bergström, director-general of the European Federation of Pharmaceutical Industries and Associations.
His comments will reinforce fears of disruption to supplies of critical products such as medicines and oil if Greece fails to find a way out of its debt crisis.
Mr Bergström warned that the “technical breakdown in infrastructure supporting transactions, uncertainty on the validity of contracts, coupled with general social unrest” could imperil pharmaceuticals supplies in the event of euro exit.
Shortages could be exacerbated by an increased economic incentive for drugs to be exported from Greece, and sold at a higher price in neighbouring markets if the euro is replaced by a sharply depreciated drachma, Mr Bergström said.
Individual drug companies were working on measures to maintain supplies but competition laws made it hard for the industry to come up with a co-ordinated response, he added in his letter to Vytenis Andriukaitis, EU health commissioner, seen by the Financial Times.
Mr Bergström called for an urgent meeting with Mr Andriukaitis and other commissioners to discuss “concrete contingency plans”.
In depth
Greece debt crisis
The Syriza government is facing resistance to its plans to tackle the country’s massive debt burden
In addition to supply risks, drugmakers are also worried that falling prices in Greece could put downward pressure on pricing elsewhere in Europe because of the widely used system of “reference pricing”, under which drug prices in one country are often pegged to those in others.
Mr Bergström urged the commission to seek an agreement among European health ministers that EU members would not use Greece as a reference when setting prices.
Pharmaceuticals manufacturers and patients alike have been hit by sharp cuts in Greek healthcare spending during the country’s financial crisis.
Industry executives and healthcare analysts say the country suffers from an especially inefficient pharmaceuticals market hobbled by the vested interests of hundreds of wholesalers and powerful pharmacists.
This is reflected in among the lowest penetration of off-patent generic drugs in Europe because these interest groups have favoured more pricey branded medicines. The European Commission has been pressing Athens to tackle this problem as part of its economic reforms.
