Warning on Sustainability of European Drug-Funding Structures

Senior sources at leading Portuguese drug and vaccines maker Bial have issued a warning on the likely sustainability of existing drug-funding structures in Europe. Company President Luis Portela cited the European Union's (EU) rapidly aging population and high levels of reimbursement, which in the extreme example of Spain have artificially lowered average drug prices to five times below those of the US.

Further, Portela highlighted the fact that growing pressure on prices from governments have negatively impacted drug company margins, with a consequent shortage of funds for reinvestment in R&D. In 1990, six of the world's best-selling drugs were European in origin, but only two of the top 10 products are now produced by drugmakers based in the EU. Indeed, Bial is itself a case in point, as the company recently turned to Portuguese investment agency API for a EUR121.5mn (US$162.50mn) funding stream, targeted on further development of two compounds for epilepsy and Parkinson's disease.