Hungary plans to cancel full subsidies on drugs as this measure would be seen as an effective way to increase patients’ contribution and drug price awareness – Mr Lajos Molnar, Hungary’s Health Minister said in TV show Napkelte. He also added, that the current free availability of drugs results in many cases in unduly consumption.
Mr Molnar highlighted, that a 3-year plan is being worked out by the Health Ministry, which will use as an input at least 15 types of studies. The plan will include how much contribution could be expected from patients: which is currently estimated in the 8-20% range regarding the currently fully subsidized drugs.
Our view: We would see the government's plans to cancel 100% drug subsidies as slightly positive to Richter and Egis share price today, as we see that it could lower the potential growth of drugmakers contribution to the Hungarian drug subsidy budget next year. Currently the gap of the Hungarian drug subsidy budget is co-financed by drugmakers and the government. Growing drug consumption in Hungary puts upward pressure on these contribution, but this measure could ease this.