Italy to cut pharma budget and use resources for earthquake relief

The Italian medicines agency AIFA and the business federation Farmindustria have expressed deep concern about the decision by the Italian government to cut the pharma budget and use the resources for funding relief for the earthquake in Abruzzo.

Ministers have drafted a decree to provide funding for the area affected. One of the measures is a reduction of Euro 400m in the amount the national health services can spend on medicines distributed through pharmacies in 2009.

The provision has lowered the official ceiling on pharma spending from 14% of the overall budget to 13.6%.

Guido Rasi, director general of AIFA, stressed the agency's support for the people of Abruzzo who have been hit by the earthquake. He also said that he appreciated the government's measures to deal with the emergency.

However, he expressed "deep concern" about the consequences of the draft legislation, which could significantly affect the drugs industry, parts of which have also been hit by the earthquake.

Rasi also claimed the measures were contrary to an agreement made between the pharma sector, government and public institutions last October.

"The budget measures approved yesterday risk seriously compromising the possibility for all citizens to have access to innovative drugs," he warned.

Farmindustria said it understood the need to provide funding for reconstruction, but felt drug companies were being disproportionately targeted by the provisions.

It said if the drugs spending ceiling was breached, two-thirds of any overspend has, by law, to be covered by the pharma companies through a payback scheme. The other third has to be covered by distribution companies such as pharmacies.

Farmindustria described the measures as a tax on drug companies and the distribution chain.

"The provision once again penalises (pharma) companies, which have already suffered numerous price cuts in past years, and reduces the resources for the regions, for health spending and therefore also for hospital pharmaceuticals," the federation said.

Another part of the decree has introduced a 7% cut on the price paid by the national health service for generics.

Ministers have estimated that at least €8bn will be needed for the area hit by the earthquake.