MedFrance opposes tax changes on low-cost medicines

MedFrance, a union representing pharmaceutical companies in France, is challenging proposed tax changes that would increase costs for manufacturers of older, low-cost medicines. The 2027 Social Security Financing Bill (PLFSS) aims to save about 3 billion euros by adjusting how medicines are taxed, but MedFrance argues the burden falls disproportionately on essential, mature treatments.

Shortages linked to low-cost medicines

Data from 2025 shows that over 90% of medication shortages involved medicines priced below 10 euros. Between 2022 and 2025, the number of discontinued products increased by more than five times, from 56 to 297. While no direct cause-effect relationship is established, these trends raise concerns about the economic sustainability of low-cost medicines.

Tax burden shifts to older treatments

MedFrance highlights that the increase in pharmaceutical spending is primarily driven by high-cost treatments. Meanwhile, essential medicines with low prices face growing financial strain. The union warns that this imbalance could threaten the availability of treatments that many French people rely on daily.

Call for revised tax calculation

The union is pushing to revise the method of calculating the additional contribution, a tax on pharmaceutical sales introduced in 2026. MedFrance argues that the tax should be based on sales actually reimbursed by the Health Insurance, not all sales of reimbursable medicines. This would reduce the burden on manufacturers of essential drugs.

Proposed changes to drug evaluation

MedFrance also seeks to amend Article 30 of the PLFSS to involve manufacturers more in drug reevaluation processes. The union is concerned that current policies could limit treatment options, increase patient costs, and favor more expensive treatments over existing, affordable ones.

Legislative push for tax relief

An amendment proposed by deputy Michel Lauzzana in 2026 suggested a 30% reduction in the additional contribution for certain medicines, based on factors like their essential nature and production location. However, the 2027 PLFSS rejected this provision, leaving MedFrance to urge the Senate to reintroduce it.

Health sovereignty and pricing agreements

A 2026 framework agreement between the Economic Committee for Health Products (CEPS) and the pharmaceutical industry aimed to support French and European production in pricing decisions. MedFrance, a signatory, now wants these principles reflected in tax policies. Unlike the agreement, the PLFSS amendment offers only limited tax relief, prompting calls for more comprehensive reforms.