The Daily Telegraph

Second Danish drug-maker quits Greece over price cut
The Daily Telegraph

The heavily indebted Greek government has cut the prices of medicines by 25pc. However, Leo Pharma has suspended the sale of two of its drugs because it claims that the price reductions will lead to job losses in Europe. Kristian Hart Hansen, a senior director of the company, said the 25pc price reduction would encourage similar moves in other countries with large debt problems such as Ireland and Italy, according to the BBC.

Last week another Danish company, Novo Nordisk, withdrew sales of one of its products from Greece for the same reason.

According to the BBC, Stefanos Combinos, the director general of Greece’s economy ministry, said that Greece was one of the three most expensive countries in Europe for medicines. He also said that pharmaceutical companies had an obligation to accept price reductions. Leo Pharma claims it is owed millions of euros in unpaid bills by Greece.

Greece is facing financial crisis. At the start of this month, eurozone members and the IMF agreed a €110bn (£95bn) three-year bail-out package to rescue the country’s economy. In return for the loans, Greece has started to make wide-ranging, deep and painful austerity cuts. Mr Combinos told the BBC that Greece had been under pressure from the IMF to make severe cuts and anticipated that a compromise on a price reduction could be reached soon.