Pharmaceuticals give rise to conflicting interests. On the one hand, it is important for doctors and their patients to have wide and equitable access to the drugs they need for treatment and, accordingly, for costs to be affordable, while at the same time avoiding over-prescription and wasteful use. On the other, it is equally important that the companies producing pharmaceuticals are able to make sufficient profit to make investment in new drugs worthwhile. Given the social dimension together with the fact that it is public agencies or health insurance funds rather than the final consumers who are effectively the purchasers of pharmaceuticals, the price mechanism, unlike in other markets, cannot be left free to determine the balance between supply and demand.

Host Country : Germany

Place and date : Berlin, 30.6. - 1.7.2008

Peer countries : Bulgaria - Finland - France - Luxembourg - Malta - Netherlands - Poland - Portugal - Slovenia

Stakeholders : CPME, PGEU, ESIP

Containment of the cost of pharmaceuticals which nevertheless ensure adequate provision to the drugs needed is a common objective across the EU. There are, however, different approaches to the pursuit of this objective which in some degree reflect differences in the structure of the healthcare sector across the EU and which can limit the extent to which practices adopted in one country are transferable to others. Despite this, exchange of views and experience can be valuable in suggesting the means of improving current methods.

 The Peer Review will focus on the following issues: 

• price negotiations and tendering procedures between insurance and pharmaceutical companies
• risk-sharing agreements between pharmaceutical companies and health care providers
• agreements on budgets for the treatment of illnesses (cost-controls)

Peer Review manager

Ms Monika Natter (ÖSB Consulting GmbH)