European pharmaceutical companies may reduce production due to rising electricity prices

European pharmaceutical companies have warned that they may stop the production of a number of low-cost generics due to rising electricity prices, and called for a review of the pricing principle for these products. According to Reutersan open letter was sent to the ministers of energy and health of the countries of the European Union (EU), as well as to the European Commission, by the Medicines for Europe lobby group, which represents the interests of Teva, Novartis, Sandoz and other pharmaceutical manufacturers.

As noted in the letter, for some pharmaceutical plants in Europe, prices for electricity and raw materials have increased by 50-160%. The companies are asking that no restrictions on electricity consumption be imposed on them, and that the generics sector be included in the program to support the economy. “Higher energy costs are simply eating into the profits of many important drug makers in the fixed price system that exists in Europe,” Adriaen van den Hoven, head of Medicines for Europe, told Reuters.

The authors of the letter expect that it will be considered on Friday, September 30, at a meeting of energy ministers from 27 countries. The Czech Republic, currently chairing the EU, confirmed receipt of the letter, but noted that other issues not related to the situation of pharmaceutical companies would be considered at the meeting on Friday. The European Commission also confirmed receipt of the letter and promised to respond to it “in due course.”

Alena Miklashevskaya