The Cyprus Association of Pharmaceutical Companies (CAPC) is preparing a list of pharmaceuticals to be withdrawn from the market due to prices being too low. A representative from CAPC, Avgoustinos Potamitis, told Phileleftheros that “consecutive reductions in prices have made meds unprofitable for pharmaceutical companies”.
The price cuts are a result of a directive by Health Minister Filippos Patsalis, issued last year, resulting already to some price reductions in January 2015. The next reduction of 8.5% by end of June is seen by the government as a necessary measure to bring higher Cypriot med prices in line with the rest of Europe.
A World Health Organisation (WHO) report, published last year, had raised the issue by calling for an immediate reduction on medicine prices across the board after finding “per capita spending on drugs in the private sector is among the highest in the world” in Cyprus.
According to reports, the directive from the minister is a temporary measure as efforts to get the National Health Service off the ground have been delayed. The brain of the scheme, a sophisticated health management software, is expected to make the entire system more efficient as well as bring prices down as a result.
The Cyprus Association of Research and Development for Pharmaceutical Companies is also reacting to the price reduction not just because meds will become unprofitable but also because they see the directive as “dictatorial”.
It seems the government is determined to bring prices down one way or another, including finding other ways to import meds, if necessary.