FRENCH PHARMA TAKES CREDIT FOR HEALTH REFORM SAVINGS

A French pharmaceutical association has claimed that the sector is a leading driver of the country's tortuous health reform process. According to manufacturers group LEEM, drugmakers have been responsible for savings of around EUR550mn (US$595.65mn) in 2005 alone.

Generics makers have also reportedly accounted for around half of this total -- and partly explain the country's slowing drug sales. According to official statistics, market value in the 12 months to April 2005 was only 5.4% higher at EUR17bn (US$20.33bn), while sales rose 6.2% in 2004 and 7.5% in 2003. While this is faster than Germany or Italy, growth is well below levels in the US and fellow EU member Spain.

France's government aims to reduce total healthcare spending by EUR3.5bn (US$4.17bn) by 2008, with the drug sector contributing around EUR1bn (US$1.19bn) of this. Pharmaceuticals currently account for around 19% of total health fund reimbursement.

Meanwhile, as well as cutting reimbursement, French authorities have created a new health agency, to be known as HAS. With a budget of EUR59mn (US$70.46mn) in 2005, the body's primary role is to promote "sensible" pharmaceutical consumption, as well as re-evaluating the use of existing drugs. One of the initial goals of HAS will be to revise the country's list of serious chronic illnesses, which currently includes 7.2mn registered long-term sufferers.

France's current cost-cutting drive is the first major attempt to address the issue of overspending in the health system since 1995. An initiative led by the then prime minister, Alain Juppe, to introduce structural reforms was met with widespread -- and successful -- trade union resistance.