European Drug Pricing Alliances: Force or Farce?

Posted by Ed Schoonveld on Thu, Mar 01, 2018

Affordability of health care for an aging population, the emergence of innovative drugs with promising impact on patient lives and the continuing concerns over prescription drug costs have resulted in a deluge of political attention to drug pricing around the world. Immediately following the launch of Gilead’s Sovaldi, European governments declared an intent to more intensely collaborate on drug price negotiations. The Netherlands, Belgium and Luxembourg (later joined by Austria) created an alliance to jointly negotiate with the pharmaceutical industry. Today, the landscape has evolved further. What are the implications of pricing alliances for pharma companies? Will this evolve to one European price negotiation? Or will it disintegrate as countries fail to agree on common standards? Let’s analyze.

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