Changes to Spanish Drug Pricing Prompt Shortages Claims

Farmaindustria, a group representing drugmakers in Spain, has denied that a massive effort to change price labelling on more than 3,000 products has led to shortages of vital medicines. The new pricing, obliged by the government's revaluation policy, have come amid moves by US drug major Pfizer to restructure its local distribution network, although the company denies that this restructuring is affecting local availability. Meanwhile, although acknowledging that shortages occurred in January, Farmaindustria attributes the problems to efforts to stem the black market trade.

The country's political opposition has also added its weight to the controversy, claiming that cost-conscious government policy is "irresponsible." For its part, Farmaindustria has vigorously contested authorities' moves to impose a price cut over the next two years, which it says would amount to as much as EUR1.1bn (US$1.43bn). Industry groups have also criticised a new industry tax, and the government's imposition of a discount on volume sales in this year's health budget. Plans to tighten innovation criteria for drugs in the country's reference pricing system have also proved unwelcome.

Nevertheless, the Spanish government's moves to contain costs are understandable, as the country's drug market is among the top five in Europe and the top 10 in the world, with per capita spending estimated at US$330 in 2003. In recent years, already generous spending in Spain's public health sector has risen sharply, reflecting the country's rapidly ageing population.