The drug subsidy system does not support innovation but is myopically focussed on budget revenues, the IGYE said in its discussion paper.

Only a few innovative drugs are eligible for subsidises, falling from 16 in 2008 to zero in 2009 and three in both 2010 and 2011.

The EU directive requires six months to decide which products will be eligible for subsidies but the process takes an average of two years in Hungary, the IGYE complained as it demanded a transparent system.

The IGYE recommends that the extra tax on the pharmaceutical sector be reinvested in drug development.

Source: Hungary Around the Clock

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