This is an unprecedented measure. Faced with tensions in the market for amoxicillin, the most prescribed antibiotic in France, the government made a gesture to manufacturers by agreeing to increase its price. But this increase, limited in time, will have a counterpart.
In fact, the executive has proposed a 10% price increase to the thirteen laboratories that produce the antibiotic for French territory between October 1 and the end of April. In return, manufacturers will have to meet higher production targets, set on a case-by-case basis by health authorities. The objective: to fight against the shortage that affects this drug since last autumn.
The Biogaran laboratory, leader in the tricolor amoxicillin market, has confirmed that it has accepted this agreement.
Conditions to respect
“We signed an agreement in mid-August with the Economic Committee for Medical Devices that aims to frame this agreement,” explains its head of Public Affairs, Rémy Petitot.
To comply with the terms of this agreement, Biogaran must produce thirteen million boxes during the winter period. And if the affected labs don’t meet supply targets, the government will demand a refund.
“If the targets are only 50% met, for example, we will have to repay the equivalent of 50% of these price increases,” says Rémy Petitot.
Shortage last winter
The shortage of amoxicillin, like many medicines in France, is explained by several factors. “Demand skyrocketed last winter, due to an early spike in pathologies,” says Rémy Petitot. But the inflationary context has also caused tensions throughout the production chain: from cardboard and aluminum packaging to the manufacture of active ingredients. “We had no more for weeks at the end of 2022 and beginning of 2023”, confirms the president of the Federation of Pharmaceutical Unions of France (FSPF), Philippe Besset. He indicates that “residual difficulties” still persist to this day.
A worrying situation that the government does not want to see happen again next winter thanks to this measure. But Biogaran regrets that this price increase, on the one hand, is not permanent and, on the other, that it occurs a little late in the year. “This agreement is finalized in July for the winter, when our production calendars are already established,” explains the head of Public Affairs at the laboratory.
The increase in the “manufacturer price without VAT” will have almost no effect on the pharmacy counter. “The antibiotic is covered up to 65% by health insurance and subject to a general payment to third parties, the vast majority of patients will not feel it”, specifies Philippe Besset.
Source: BFM TV
