Spain Implements New Price Cut

Spanish health authorities have introduced a new 4.2% price cut on all drugs marketed in the country for more than one year, effective from March 1. The discount will affect all drugs except those included in the country's reference pricing system or with retail prices below EUR2 (US$2.63). It is estimated that the cut will affect 4,500 products, which will also face a further 2% cut later in the year.

The subject of pricing in Spain has been highly contentious in recent years, with drug industry groups claiming that the government's bundle of measures including new taxes and price cuts will cost the local sector some EUR1bn (US$1.34bn) by 2007.