The latest sector to ask for assistance as the energy crisis worsens is the pharmaceutical industry, which has warned that it may discontinue producing some affordable generic medications due to rising electricity prices and is appealing for a revision of their pricing.
Before the extraordinary EU Council meeting on Friday, the generic drug industry’s lobbying group Medicines for Europe, which includes Teva, Novartis’ Sandoz division, and Fresenius SE’s Kabi business, sent an open letter to the energy and health ministers of EU member states on Tuesday. The letter called for steps to reduce the financial burden.
Also included in the letter were several European Commissioners. Given the late hour, requests for comments were not answered by the recipients. According to the letter, raw material costs have increased by between 50% and 160% and electricity costs have increased by a factor of 10 for several pharmaceutical companies in Europe.
According to Medicines for Europe, generics organisations in member states are also requesting additional latitude from national health authorities regarding medical costs.
The pricing structure is the main problem. Off-patent medications are often offered by inexpensive pharmaceutical companies at pricing established by insurance industry groups or national health organisations, which frequently also reduce costs.
the lobby group says only 29% of the region’s prescription expenses are for generic medications, which account for around 70% of all medications prescribed in Europe and are frequently used to treat critical disorders like infections or cancer.
The recent attempt to increase medication manufacturing in Europe and make the continent more self-sufficient after the COVID-19 epidemic exposed a reliance on suppliers abroad and caused the breakdown of some supply routes runs the risk of being undermined by the rise in energy costs. The COVID lockdown in China and the conflict in Ukraine have made logistics and raw material shipments more difficult.
In the European off-patent generic medication market, where price pressure from cash-strapped health systems only permits the most cost-effective suppliers to remain, drug supply shortages, which occasionally impair patient care when alternate sources are not accessible, have a decade-long history.
