Reference pricing moderates pharmaceutical market in Norway

The macroenvironment for the pharmaceutical industry in Norway is improving. Politically, the center-left coalition is expected to hold together for at least the first two years of the parliamentary term up to 2011, despite a number of policy disagreements, comments Espicom Business Intelligence.

The recession was far less pronounced in Norway than in most other European countries and the economy is now recovering at a moderate rate. Legally, laws on intellectual property and patent provision are in line with WTO/TRIPS regulations. However, says Espicom, Norway remains on the US Trade Representative’s Watch List in 2010 for concerns over patent protection. Demographically, the population is aging, increasing demand for pharmaceuticals in the near term.

The introduction of international reference pricing has had a moderating effect on Norwegian pharmaceutical price levels, and a step-price system for off-patent drugs has ensured that prices for all generics have fallen. Important steps towards cost-containment have also been taken for reimbursable pharmaceuticals, including the use of a first-choice system.