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European Commission okays state aid for pharma companies

This article was originally published in Scrip

Executive Summary

In good news for pharmaceutical companies hit by government austerity measures, the European Commission has okayed a German scheme that exempts struggling companies from the mandatory rebates and price freezes intended to cut costs. Firms should welcome the decision because it means EU countries can use state aid to balance controlling public spending with helping pharma companies survive in difficult conditions, says Johan Ysewyn, a partner at the law firm Covington & Burling.

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