The Czech government faces legal action as it attempts to curb the country's rapid increase in drug spending.

The Czech government faces legal action as it attempts to curb the country's rapid increase in drug spending. According to an article in PharmaTimes, 11 drugmakers are suing the Czech Republic's Ministry of Health over its setting of maximum drug prices, as well as its control over the amounts paid by health insurers for these products. A further 20 drug companies are expected to follow suit, spurred on by Abbott Laboratories successful challenge last year regarding the price set for insurers to pay for its antihypertensive Tarka [verapamil/trandolapril]. Meanwhile, the Czech government plans to make further cutbacks to the funding of expensive new drugs; given that last year, drug expenditure increased 75%-100% on 2009 levels.

[Reference]

1. Taylor L.Drugmakers sue Czech govt over pricing, insurance moves. Internet Document: [2 pages], 12 Jan 2011. Available from: URL: http://www.pharmatimes.com. .