Prices of medicines
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Prices of medicines are fixed by pharmaceutical companies and sold at the same prices from all pharmacies in Denmark.
In Denmark, medicines are sold at the same prices from all pharmacies, and there is free price formation. This means that prices are fixed by the companies manufacturing or importing the medicines into Denmark. The Danish Medicines Agency has no impact on the companies' price formation.
However, the fixed, identical prices do not comprise medicines that are permitted for sale outside pharmacies, e.g. certain types of over-the-counter medicines and natural medicinal products.
Prices of medicines are fixed for 14-day periods. The companies report changes in prices every fortnight to the Danish Medicines Agency. Subsequently, we inform pharmacies, citizens etc. of the applicable prices. We inform them via medicinpriser.dk
Free competition and prices changing every fortnight make it possible to ensure strong competition and thus low medicine prices in Denmark.
At the same time, a certain stability in the market is desired. Consequently, we sometimes set requirements as to how many medicine packages each company can deliver. This requirement is imposed on the least expensive, reimbursable medicine packages that form the basis for the reimbursement price, because these packages are most in demand.
Since the companies decide which medicines they want to market and at which prices, some medicines may not be exposed to great competition. In addition, the original medicine is protected against competition from generic products for a limited period. Both situations may lead to high medicine prices.
Overall, analyses have shown that Denmark has some of the lowest prices of generic medicines (generics) in Europe. One reason may be the Danish medicine price system that contributes to keeping prices down.