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Commission to benchmark pharma industry's competitiveness

Published 02 July 2003 - Updated 04 August 2006
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The Commission adopted a Communication on 1 July, aiming to find a delicate balance between promoting the EU's pharma industry and controlling social spending.

On 1 July 2003, the European Commission adopted its official response to the 14 wide-ranging recommendations of the G10 Group, setting out how each recommendation can be taken forward. The stated objective of the Communication is to "ensure that the European-based pharmaceutical industry continues to play a valuable role in both the industrial and health sectors". The Commission underlines, in particular,
  • the necessity to create a framework of action based on the existing initiatives (Pharma Review, Public Health Action Programme) to move forward issues, such as better access to medicines, integration of markets, competition from generic medicines, etc.;
  • the importance of launching a benchmarking exercise to monitor more closely the competitiveness of the industry;
  • that action at national level could make a significant contribution in many areas; in particular, Member States could consider how market integration could be better promoted and what alternative ways may be possible to control pharmaceutical expenditure.

 

Positions: 
The European Federation of Pharmaceutical Industries and Associations (EFPIA) welcomed the Commission's response to the G10 report but warned that it was important that the implementation and monitoring of the recommendations now started. "We reiterate our commitment to work closely with the Commission, all Member States and interested parties on the follow up to the G10 Report, the Commission Communication and next steps in the process," said Brian Ager, EFPIA Director General.

The Association of the European Self-Medication Industry (AESGP) welcomed the orientation of the Commission's Communication and the fact that it addresses the major difficulties in relation to competitiveness faced by the European self-medication industry, including price-setting for manufacturers of non-prescription medicines, advertising to the public of non-prescription medicines and the mechanisms to change a medicine's classification status from prescription to non-prescription. "This communication is a significant basis for the future development of self-medication in Europe," said AESGP Director-General Dr. Hubertus Cranz.

The European Consumers' Organisation (BEUC) has welcomed the Commission's commitment to improving patient information and to see a role for a multi stakeholder body in setting common standards and identifying areas where better patient information is needed. However, BEUC has warned that this body should be independent, rather than a public-private partnership. Information must be of high quality, unbiased, accurate and comprehensive. It should not seek to increase demand for a particular drug or put commercial interests ahead of public health.

 

Next steps: 
The Commission's Communication will be discussed by the European institutions. The G10 Group will continue its work until the next EU enlargement in May 2004.

 

Background: 
Since the early 1990s, however, the EU-based pharmaceutical industry has slowly lost ground to its counterpart in the US. As a result, the G10 Medicines Group was set up in March 2001 with the aim of providing a framework for further action to improve the competitiveness of the pharmaceutical industry and to harness its power to deliver on Europe's health care goals.

The "Group of Ten" delivered its set of recommendations on 7 May 2002, relating to areas of both national and European competence. (see also,

EurActiv 9 May 2002)

 

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