LITHUANIA TO ALIGN REIMBURSEMENT WITH REGIONAL PEERS

Lithuania could align its base prices for state-reimbursed medicines with those in Latvia, Estonia, the Czech Republic, Slovakia, Poland and Hungary, which have similar average Gross Domestic Product (GDP) per capita levels. Local reports claim that as a result of the new regulations, Lithuania will provide US$39.5mn in drug subsidies per year. Currently, about 30% of drugs in Lithuania are distributed free of charge.

Lately, the Baltic country's government has been attempting to cut health expenditure introducing doctor quotas, reducing mark-ups for pharmacies and wholesalers, as well as removing products from the list of reimbursed medicines.

These measures have only fuelled complaints from domestic drugmakers that the government is not doing enough to support the industry. Currently, the value of Lithuania's imported pharmaceuticals is 13 times greater than the value of drug exports. Lithuania's generics-dominated manufacturing sector is small and is in desperate need of finance in order to modernise facilities and implement GMP, an essential standard for drugmakers wishing to expand in the wider European Union.