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Subject:  Roche Counts Out Greece Date:  9/19/2011  10:58 AM
Author:  TMFHelical Number:  886 of 898

This is starting to play out like the early stages of an Ayn Rand Novel. I fully expect there to be even more polarization over the pharma industry, and its responsibilities vs. its need to innovate and turn profits. Today in Pharmalot there was yet another story about the increasing difficulty pharma companies are having with Greece, and apparently the broader EU. I blogged in late August that Greece had apparently paid some pharma with government bonds, and Roche was quite public about this amounting to a discount on top of the negotiated prices of the medications.

Well, Roche has had enough of that and has joined Novo Nordisk in cutting off the Greece hospitals.

Roche Halts Delivery To Greece Over Payments

Roche is no longer sending meds for cancer and other afflictions to state-owned hospitals that have not paid their bills and the drug maker may do the same in other countries, such as Spain, Italy and Portugal, where bills are going unpaid.

They continue to supply private pharmacies. Still, this is not good, and likely to get worse IMO.

Roche started cutting off certain Greek hospitals after issuing warnings last summer. Greek hospitals and pharmacies generally pay Roche directly and then seek reimbursement from the taxpayer-funded health-care system, the paper writes. By contrast, pharmacies are privately owned. Meanwhile, should the Greek financial situation still worsen, Roche could “have even more troubles” collecting its debt, Schwan worries.

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Long JNJ, but cut back a bit on it and on all other pharmas I had owned.
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