Drug companies: price cuts forty times higher than the tax wedge benefits The Board of Farmindustria, meeting in Rome, once again considered the unsustainability of the price cuts of over two billion euros in 2007 alone decided by AIFA and confirmed by the Finance Act charged to drug companies. A figure forty times higher than the advantage of the tax wedge, which for the sector is equal to around 50 million euros. As if to say that the benefits of the tax wedge for pharmaceutical companies run out no later than 20 January, while the costs weigh until 31 December. In a context that severely limits the competitive capacity of companies at an international level, the Council thus had to take note of the inevitable activation by companies of measures necessary to rebalance the sector's prospects. In particular, the companies are – despite themselves – forced to suspend the program agreements and the sector agreement presented to the Government in September. In this way, both industrial investments in Research and Production for two billion euros and an increase in R&D expenses of the 30/35% in three years are compromised. The companies will also ask for social safety nets for the reduction of approximately 10,000 highly qualified employees in the areas of Research, Production and Scientific Information. A painful decision and, in fact, suffered by companies that actually had 4000/5000 new hires planned in the short to medium term. Collaboration activities with the Regions that have been successfully launched to support investment programs will also be reduced or canceled due to the lack of resources available to industry. Lastly, the Council unanimously resolved to temporarily suspend, starting from 1 January 2007, the financing of travel and hospitality expenses, in Italy and abroad, on the occasion of conferences and congresses, visits by doctors to laboratories and corporate Research Centers and Continuing Medical Education courses and conferences. The latter resolution was positively evaluated by the Competition and Market Authority. From Farmindustria.it
