New report: The myth of high Danish medicine prices

The price-cap agreements between Lif, the Danish pharmaceutical industry group, and the government help keep Danish medicine prices in line with the prices in those countries it normally compares itself to. Yet again this debunks the myth of high Danish medicine prices, according to a posting on the LIF web site.

In a new international report on medicine procurement in the primary sector, analysts COWI compared Danish medicine prices with the prices of medicine in Sweden, Norway, Ireland and Finland.

"The report shows that there are considerable variations in prices of individual medicinal products in the various countries but on January 1, 2014, Danish prices were 2% on average lower than in the comparative countries," maintains Ida Sofie Jensen, chief executive of Lif, who also points out that Lif has taken note of the results of the survey.

Result of strong competition on generics market

"With this report to hand, we can see that strong competition on prices in the generic markets has contributed strongly to the majority of medicine being bought in Denmark at very competitive prices. In other words, this means that by and large, the research-based pharmaceutical industry surrenders its entire market to generics immediately after patent expiry. It is such a precise process that you can set your clock by it, figuratively speaking,” she said.

Ms Jensen continued: “In Denmark, prices for reimbursable prescription medicines fell by almost 40% between 2008 and 2013, whilst public spending on reimbursement fell by more than 25% over the same period. The report shows that Danish medicine prices are in line with the European countries that Denmark is normally compared to."

According to Ms Jensen, the report also shows that the price-cap agreements between the government and Lif have indeed capped the prices of medicinal products in Denmark since 2007, they have had the desired effect and have helped ensure competitive prices in Denmark for the benefit of the private and public sectors.