Pharmaceutical Pricing in France: A Critique
(2008; 3 pages)


In France, pharmaceutical pricing relies on an ex ante evaluation of the medical value of drugs. Prices are negotiated on the basis of an industry-wide contract between drug manufacturers and the Health Products Pricing Committee (Comité Economique des Produits de Santé). Together the Committee and the drug companies sign a number of contractual agreements, which give the national health system a variety of flexible means to monitor prices and drug use, also ensuring that public resources are properly allocated. Some drugs have different levels of therapeutic value, depending on who takes them. These products in particular need close monitoring. Rebate policies are one of the tools available to control such spending. The economic efficiency of such rebates should not be overestimated; in practice they do not significantly decrease spending.

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