Brussels refuses to investigate high medicine prices

The European Commission has turned down a call made by Labour MEP John Attard Montalto to investigate and take action against the inexplicably high prices of medicines in Malta.

Instead, it threw the ball back into Malta's court, saying such an issue was within the competence of the Maltese authorities.

In view of the EU executive's declaration, Dr Attard Montalto has called upon the government to launch an official inquiry to establish the reason for the "exorbitant prices of medicinal products" sold in Malta.

"From the Commission's reply it is obvious that the Maltese government is responsible for ensuring the control over pharmaceutical expenditure," he told The Sunday Times.

The government should now launch an official inquiry to obtain information and follow recommendations, Dr Attard Montalto said.

Providing examples to the Commission of unmatching prices of the same medicinal products bought in Malta and in Brussels, Dr Attard Montalto said Maltese consumers were paying much more to aquire the same medicinal products sold in other EU states.

"The price of medicines in Malta is exorbitant, as can be gauged by a few price samples of medicines. The purchase price is often more than double that of identical medicines in Brussels," the Labour MEP told the Commission.

However, replying to his parliamentary question, the Commission's Vice-President Antonio Tajani rejected Dr Attard Montalto's call for an in-depth investigation, saying the matter falls within competence of the Maltese authorities.

Quoting the EU Treaty, Mr Tajani said member states were responsible for the definition of their health policy and for the organisation and delivery of health services and medical care.

"In this context, the national authorities are free to set the prices of medicinal products, to influence these prices through national policies or to leave the regulation of prices to the market forces," he said.

At the same time, the Commissioner made it clear that the government could intervene in the market to make sure consumers were getting a fair deal.

"Each member state may determine the conditions of reimbursement of medicinal products under its national social security system," he said.

A government study had found that, on average, Maltese are paying 40 per cent more to aquire their medicinal proucts than the EU average.

The exorbitant cost of medicinal products in Malta is down to various factors, including economies of scale and suspected cartels among importers.

Despite various warnings given to importers by the Maltese authorities over the past years, the situation has remained unchanged.

Back in 2006, the government had set up a working committee on the pricing of medicinal products to devise a system that would ensure fair medicine prices.

Finance Minister Tonio Fenech had said the structure, set up on a voluntary basis, was working and a number of importers had agreed to reduce the prices of medicines when these were deemed to be too high. However, he had admitted other importers refused to adjust their prices, even when they did not have a justified reason.

In another attempt, Mr Fenech had announced in his most recent budget speech that high medicine prices would have to be reduced, forcibly if necessary.

Medicine importers, however, had reacted negatively to this statement, saying they would not accept an imposed reduction in prices.