Single European pricing likely to be delayed

The complexity of pricing systems and varied reimbursement rates for drugs, coupled with different purchasing powers and healthcare systems across Europe pose a formidable obstacle for the adoption of a single EU pricing. The prices of orphan drugs and generics also greatly vary due to differences in VAT, dispensing fees and mark-ups across Europe.

The pharmaceutical industry believes that systematic efforts like improving the national reimbursement systems and centralized efforts towards pricing preferably through the European Commission can gradually culminate in single European drug pricing. According to Eric Gorka, head of commercial operations at Sandoz, speedier pricing and reimbursement systems are required for both innovative and generic medicines to get them to market more quickly. This he believes may reward innovation and improve access to lower-priced medicines.

Michael Doherty, global head of Roche’s pharma regulatory affairs division, said: “We do want a single price across Europe, but there is a huge amount of inflexibility to overcome first.”