Hundreds of affordable pharmaceutical drugs could be out of market

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The generic drugs manufacturers announced that hundreds of affordable pharmaceutical drugs might be out of the market due to the tax clawback.

The government represented by the Ministry of Health and the Ministry of Public Finance rejected any proposal made by the representatives of the companies forming the Generics’ Manufacturers Association (APMGR), ignoring any severe economic and social effects which the tax clawback might trigger, stressed Laurentiu Mihai, president of the aforementioned association.

He showed that the generics’ manufacturers, most of whom are located in Romania, have no other solution but insolvency or the reevaluation of their products portfolio, leading to hundreds of affordable pharmaceutical drugs getting out of the market.

There are drugs against the vascular and gastric diseases and for the central nervous system among these pharmaceutical drugs.

Laurentiu Mihai said each company is going to make its own decision.

„We are going to continue our activity in Romania as long as we can afford it. The payment differences showed up once we were announced by the tax on the first quarter of 2012. The notifications include some flaws we have questioned,” showed Laurentiu Mihai.

Assessing the situation of the prescription drugs, one can see that those whose prices are below 25 RON account for 75 percent and 21.6 percent of the total value. They are going to be taken out of the list of compensated drugs and will disappear from the market.

As the main reason brought by the government to maintain the tax in its current form is that of meeting the commitments with the IMF and European Commission, the APMGR member companies asked the two institutions to publicly declare themselves in favour of maintaining the tax clawback in its current form.

„We refuse to believe the IMF and the European Commission back up a solution that might obviously lead to the limitation of Romanian people’s access to pharmaceutical drugs and to the destruction of the local pharmaceutical industry,” said Laurentiu Mihai.

The APMGR representatives claim that the generics manufacturers take the most severe blow from this tax, despite the fact that they have a major contribution to the real economy, as their activities provide 8,000 jobs in Romania and bring a significant contribution to the public finance by direct and indirect taxes. Insolvency equals the end of the Romanian industry of pharmaceutical drugs.

The patients’ representative Cezar Irimia warned that the access of the Romanian patients to drugs is increasingly limited and the life expectancy goes down, as it already is five years smaller than in the rest of the European states. He added that people cannot afford to buy drugs anymore due to poverty.

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