Sunday, May 30, 2010

Novo Nordisk Pulls Insulin From Greece Over Money


More fallout from the European debt crisis. Novo Nordisk has yanked its diabetes product from Greece after the government instituted substantial price cuts of up to 25 percent on hundreds of medicines (see background), which the Danish drugmaker claims would force it to lose money on top of the $36 million it is already owned by Greek government.

More than 50,000 Greek diabetics use Novo Nordisk’s insulin product, which is injected with a fountain pen-like device and, not surprisingly, a patient association called the move a “brutal capitalist blackmail” and a “violation of corporate responsbility,” according to the BBC.

Pavlos Panayotacos, whose 10-year-old daughter has diabetes, wrote to Novo Nordisk ceo Lars Sorensen to say that, “as an economist I realize the importance of making a profit, but healthcare is more than just the bottom line. As you well may know, Greece is presently in dire economic and social straits, and you could not have acted in a more insensitive manner at a more inopportune time.”

However, Sorensen is having none of it. He wrote back to say the decision was prompted by “the irresponsible management of finances by the Greek government which puts both you and our company in this difficult position,” the BBC reports. A Novo Nordisk spokesman says the issue is not about killing people and, to compensate, the drugmaker will make available its glucagen insulin free of charge.

Novo Nordisk is also concerned that the price cuts will have a ripple effect elsewhere in Europe, because other countries use Greece for as a reference point for setting drug prices.

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