Half of local pharmacies could close next year if drug prices fall too much, said Robert Popescu, president of the Association of Pharmaceutical Distributors and Retailers in Romania (ADRFR).

If drug prices go down by 15-16%, the distributors’ and pharmacies’ direct revenues would also decrease by 15-16%, Robert Popescu said, cited by local Mediafax.

Prime Minister Victor Ponta announced last Sunday that the Government will cut drug prices by 20% starting July 1, whereas Health Minister Nicolae Banicioiu said that Romania will have the lowest drug prices in Europe and that the price cut procedure has been completed.

The measure will not have a direct impact on the health insurance funds, because it will basically represent a cut in the clawback tax, said Robert Popescu.

The national health insurance fund will reimburse the same amounts for drugs, he added.

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