Pharmaceutical Industry Proposes State Backed Securities To Recoup Unpaid Bills

BMI View: The delay in public hospital payments to drugmakers threatens Spain's attractiveness as a location in which to sell drugs and medical devices, especially as public health spending accounts for 71% of total health expenditure, which was EUR73.62bn (US$97.65bn) in 2010. Farmaindustria, the association which represents the research and development (R&D)-based pharmaceutical industry in Spain, is in talks with authorities about using state-backed securities to recoup the debt owed to companies by regional public health authorities. We believe the national government could well become a fiscal backstop for the country's autonomous regions, just as it did for the power industry,

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