European Commission to put ‘under surveillence’ medicine price movements

This warning was given in a reply by European Commissioner Joaquin Almumia on 10 August 2010 to a parliamentary question by Labour MEP John Attard Montalto.

“The Commission will continue to carefully monitor developments in the Member States, including Malta, regarding prices of pharmaceuticals, and the compatibility of national pricing and reimbursement rules with the EU legislation,” Almunia warned.

In his reply, Almunia added that under Article 168(7) of the Treaty on the Functioning of the European Union, EU action “shall respect Member States’ responsibility for the definition of their health policy and for the organisation and delivery of health services and medical care”.

“When assessing how competition is working in the sector, the Commission needs to consider that national authorities are free to set the prices of medicinal products, and to influence these prices through national policies including negotiations with the pharmaceutical companies,” Almunia added.

He explained how national interventions to regulate the cost of medicines were based on a variety of factors specific to each country, such as “historical and social traditions, public health priorities and budgetary considerations”.

“This results in price variations across the European Union, but is not in itself contrary to the EU competition rules,” the Commissioner insisted.

However, the Commission actively supported Member States in their efforts to improve patients' access to medicines through various measures, “including a better cooperation on clinical and relative effectiveness of medicinal products,” Almunia added.

Almunia explained how the Commission, in line with the recommendations of the High level Pharmaceutical Forum, had launched “a process exploring the best ways for Member States to join forces for carrying out the so-called Health Technology Assessments (HTA).

A pilot cooperation was already taking place, which would lead to concrete recommendations and follow-up at European level.

“The added value of this cooperation is that it will facilitate and strengthen the evaluations to be made subsequently at national level by pricing and reimbursement authorities,” Almunia added.

“Despite the hesitation of pharmaceutical companies to reduce prices and despite the various reasons given as to why prices should not be reduced in Malta, finally some of the 150 medicines that have initially been identified as high in price in Malta have finally seen their prices fall,” Attard Montalto commented.

“We should also address the question of medicines for children as the first priority in our endeavours to reduce exaggerated medicine prices in Malta,” the Labour MEP concluded.

On his part, parliamentary secretary for consumers Chris Said said the government had achieved price reductions of 4-67% on some 91 medicines.

“Government notes with satisfaction that the suggestions from the European Commission on medicine prices are in line with those already carried out in Malta. The EC’s reply to Attard-Montalto stated prices are of national competence, and government are free to influence such prices with the necessary measures.”