MORE GLOOM AMID SPANISH DRUG PRICE DOWNTURN

New official data shows that Spain's consumer prices for pharmaceuticals increased by just 0.1% in June 2005, and were 2.5% lower year-on-year. Meanwhile, the statistics indicate that the monthly rise in the overall consumer price index was 0.2% and 3.1% higher year-on-year.

Much of the flat growth in recent months has been blamed on Spain's notoriously harsh attitude to pharmaceutical prices, as the government attempts to contain its growing drugs bill amid a rapid ageing of the population. The country, which already has some of the lowest prices in the European Union (EU) and is the centre of a thriving parallel export trade, is now awaiting a tough new pricing law.

The measure envisages a 20% cut in the price of two-year-old medicines, discounts on additional sales of up to 5%, and a reference pricing system based on the cost of finished products rather than active principles. Industry observers estimate that the cuts could see market value reduced by 10%, from roughly EUR10bn (US$12.16bn) in 2004, while some firms expect their revenues to decline by as much as 20% as a result.

Relations between the multinational sector and government are becoming increasingly bitter in Spain, a trend examined by Business Monitor International in the Spain Pharmaceuticals & Healthcare Report. The report examines opportunities for generics makers amid a sharp recent rise in the cost of state health provision, and BMI also features its independent 4-year forecasts for prescription and OTC drugs, generics, branded drugs and imports/exports. The Report also includes competitive intelligence on leading drug companies operating in Spain, covering sales, market share, products and strategy.