Government plans to pass a new law, which would require drugmakers to pay few percent (2-3%) of their domestic revenues to the Hungarian drug subsidy budget -according to Nepszava’s yesterday issue.
Our view:
We would see the proposed contribution rule to have a negative affect on Egis and Richter, as their contribution could almost double from 2005, when they paid 1.28% and 1.47% of their domestic revenues to the drug subsidy budget respectively. However, we see that the currently proposed contribution system would be a methodological step-back, which would require drug makers to contribute to the drug subsidy budget based on their domestic market share and not on the basis of subsidies consumed by their drugs sales. We see that generics drug makers won’t agree with the proposed system, since they usually contribute less to the growing gap of the drug subsidy budget than original drug makers.