Price of innovative medicines pressed down by price competition, says Finland's pharma

The drug reference price system introduced in Finland last spring was expected to boost price competition and direct patients towards more inexpensive generic medicines. According to the pharmaceutical wholesale index, the price drop was significant. However, according to the country's trade group - the Pharma Industry Finland (PIF) - innovative medicines continue to account for an unchanged share of total pharmaceutical sales but their prices have decreased dramatically. The wholesale index shows that the prices of reimbursable medicines were 5.6% down, the PIF notes.

Price competition did not just affect generics but also the prices of innovative medicines have gone down. For many years, generics have accounted for about 42% of all medicine sold in Finland on a volume basis. Irrespective of the new reference price system, this share did not change in 2009. Innovative medicines have thus been able to retain their market share. They have kept up with the price competition, thereby ensuring that patients continue to have the choice of buying the familiar medicinal products they trust, says the PIF.

Compiled by Statistics Finland, the pharmaceutical wholesale index shows a 3.6% price decrease for all medicines in 2009. The prices of reimbursable prescription medicines were down by 3.8%.