Consumer Law/Internal Market: Commission publishes new Communication on single market in pharmaceuticals

As a result of the two year discussions on the subject of a single market in pharmaceuticals the Commission has published a new Communication. In looking at the various options open in the move towards a Single Market the Communication highlights three approaches, “status quo”, “full integration” and the “middle way”. Each approach has different implications for the pharmaceuticals sector and the document analyses the various issues in more depth. In short the first approach, maintaining the status quo, is unlikely to allow the European pharmaceutical industry to restore its global competitiveness. The second approach of full integration could relieve current tensions by forcing price convergence but this in itself would not be compatible with the principle of subsidiarity and would be difficult to achieve in political terms. There is also a risk that under such an approach low prices could trigger a decrease in Europe’s global pharmaceutical R&D investment, while high prices could reduce patient access to certain products in countries where economic and social conditions mean high prices cannot be afforded. Finally the “middle way” would distinguish between the different sectors of the market, reinforcing co-operation between Member States and healthcare providers, bringing in normal market mechanisms in sectors suited to convergence.

The Communication also discusses ways to stimulate a more competitive generics market, how to speed up market access, the implications of global electronic commerce in pharmaceuticals and the dialogue between current Member States, the applicant countries and the pharmaceuticals industry.