Generics Companies Considering Cuts in Europe Over Drug Pricing Laws and Energy Crisis

World events and pricing legislation are putting pressure on generic manufacturers, according to an open letter written by the lobbying group Medicines for Europe. The industry group notes that raw material costs have skyrocketed by between 50%-160%, dwarfing the inflation rate of 9%. Energy costs have been another concern due to disruptions caused by the war in Ukraine. Finally, the group points out that drug pricing regulations and other laws have made it difficult for the industry.

According to Fraiser Kansteiner, “While cheaper, off-patent drugs have accounted for some 70% of medicines dispensed in Europe over the past decade, the copycat drug industry has historically been beholden to “strict price regulation, budget austerity measures, and lowest-price tender rules,” Medicines for Europe contends. That, in turn, has fueled “substantial price erosion” and created an ‘unsustainable situation for manufacturers.’”

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(Source: September 28^th, 2022)