Price Reduced in Patented Medicines in Spain.

Spain Govt. took an important step, in order to avoid the financial crisis in Spain. Spain Govt. has reduced prices of many medicines and drugs, which also include many drugs those has been patented for up to 10 years. The main reason behind reducing the price is that, Govt is hoping of reducing what the public health system spend on prescription drugs as much as 23 percent. The saving which Govt. can make by taking these steps is roughly around 1.3 billion Euros or may be about $ 1.6 billion.

But this effort, does not extend to drug in the reference pricing system. But FarmaIndustria , the Industry trade group, criticized Govt. move and has warned the Govt. that it can cause thousands of job losses, and it can also make an effect on the research and development work going on. In another important step, Govt also decides that the price on generics has also been reduced by 25 percent.

These “are difficult and tough measures to take” but “are intended to strengthen the sustainability and balance of the National Health System,” says Trinidad Jimenez, Spain’s Minister for Health and Social Policy (that’s her in the photo). The ministry “has a deep respect for the pharmaceutical industry and understands their reaction, to defend their interests. (However), the pharmaceutical bill rises to nearly 15,000 million euros annually and the government becomes the largest customer in this sector…We demanded a lot to the industry and we believe that enough is enough.”