Medicine Prices Will Rise 'Sooner or Later,' Pharma Industry Warns — Government Says It Is Prepared

Portugal's pharmaceutical industry has warned that medicine prices will inevitably rise, driven by the global energy crisis, surging raw material costs, and growing political pressure from the United States to narrow the gap between European and American drug prices.

APIFARMA president João Almeida Lopes told Jornal de Negócios and Antena 1 on 6 April that price increases are coming "sooner or later," describing them as unavoidable given current conditions.

"We have substantially lower prices in Europe than in the United States, and that is clearly a reality," Almeida Lopes said. "Most innovative medicines come from the United States. On one hand, there is inflation and what it brings; on the other, there will be political pressure for European prices to converge toward American prices."

Transport Costs the Biggest Concern

The industry body pointed to multiple cost pressures cascading through the pharmaceutical supply chain: petroleum derivatives, plastics, glass, and aluminium used in packaging are all rising sharply. But Almeida Lopes singled out transport costs as the "biggest concern right now."

APIFARMA warned that unless regulators accept faster price adjustments, Portugal risks supply disruptions — stock-outs of essential medicines. The industry noted that neighbouring Spain already provides state support for transport and energy costs in the pharmaceutical sector and suggested Portugal should follow suit.

A separate INFARMED alert around the same time flagged a shortage of Metoprolol Aurobindo, a medication for hypertension and angina, underscoring the fragility of supply chains.

Health Minister: No Immediate Alarm

Health Minister Ana Paula Martins responded on 8 April during a visit to Hospital de Santo André in Leiria, acknowledging the pressures but urging calm.

"For now, we do not yet have any reason for major concern, but we must be prepared — we must be prepared," Martins said. She framed the situation as one Portugal is "naturally monitoring," while stopping short of announcing new policy measures.

The minister declined to comment on APIFARMA's call for state subsidies to offset energy and transport costs for the sector.

Price Protections Already in Place

Portugal does have existing safeguards. Under current INFARMED rules for 2026, pharmacy medicines priced at or below EUR 30 are frozen — shielding common drugs such as Metformin, Paracetamol, and basic antibiotics from price increases. Hospital medications under EUR 75, including some oncology agents, are similarly protected. Essential and critical medicines, as well as generics and biosimilars, remain exempt from price adjustments.

For medicines above those thresholds, INFARMED benchmarks Portuguese prices against Spain, France, Italy, and Belgium. If domestic prices exceed the European average, they can be cut by up to 20 per cent. These rules are projected to save the state roughly EUR 50 million this year.

The Bigger Picture

The warning comes against the backdrop of the Middle East conflict, which has sent global energy prices surging since late 2025, and the ongoing impact of US tariffs on European trade. The pharmaceutical industry's message is clear: the protections in place may hold for now, but the combination of energy costs, raw material inflation, and American pricing pressure is creating a squeeze that cannot be absorbed indefinitely.

Almeida Lopes did not hold back in his broader critique of the health system, describing it as having "too much ideology and too little management."

Sources: ECO, Público, SIC Notícias, Expresso, Lusa