Spain announces big drug-price cuts, aiming for $1.6 billion savings

In a move that has been described as a 'mortal blow' to Spain's pharmaceutical in some Spanish press reports, the nation's government has announced that it is cutting the prices of patented prescription drugs by as much as 23% in the hope of reducing what the public health system spends on medicines. The savings should amount to roughly 1.3 billion euros ($1.6 billion).

The price paid by the government for generics has also been reduced by 25%, and the European Generic Medicines Association (EGA) has recently written to the Spanish Health and Social Policy Minister saying that price cuts must be followed by an increase in patients' access to generic medicines (The Pharma Letter May 10).

Follows Greek moves