By Mathias Ask 

Pharmaceutical companies are pushing back against decisions by cash-strapped European governments to reimburse patients for drugs that haven't been approved to treat their conditions.

National health boards and policy makers say paying for so-called off-label drugs, which are often cheaper than their approved rivals, is necessary to cut national health-care bills. However, pharmaceutical companies argue that encouraging doctors to prescribe medicines beyond their approved usage could harm patients and may violate European Union law.

In June, Italy became the first EU country to allow its national health system to pay for cancer drug Avastin when it is prescribed to treat age-related macular degeneration, or AMD, an eye sickness that can cause blindness. The European Medicines Agency hasn't approved Avastin for treating AMD.

Although the price of drugs can vary widely from country to country, Avastin typically sells for about EUR40 ($53.9) per injection in Europe, while Lucentis, a drug that has been approved to treat AMD, sells for around EUR900 per injection.

On Wednesday, France's National Assembly passed a law allowing for the reimbursement of off-label medicine as an attached amendment to its social-security budget. It specifically mentions Avastin as an example of a drug that falls under this category. The law could save the French as much as EUR200 million a year, said a spokeswoman for Gerard Bapt, the Socialist lawmaker who proposed it. Mr. Bapt is also a medical doctor and heart specialist.

Novartis AG, the Swiss pharmaceutical company that markets Lucentis in Europe, has said it may challenge the French and Italian decisions for violating the EU's regulatory framework. In a statement, a company spokesman wrote "at this time we are carefully considering all legal options."

A spokesman for the European Commission, the EU executive in charge of enforcing the bloc's laws, declined to comment on the French and Italian laws. However, he said the commission will launch a study on off-label prescription later this year to evaluate legal and scientific aspects.

Prescribing medications off-label is neither illegal nor uncommon in Europe, but it is up to national regulators to place restrictions on use. The EMA doesn't keep official statistics on off-label use, but it is common in the fields of oncology, pediatrics and ophthalmology.

When prescribing off-label, doctors typically rely on clinical guidance by independent researchers if available or experience suggesting that the drug is effective when treating a particular illness.

Some experts say that drug companies are reluctant to invest in clinical trials for less expensive drugs because there isn't enough market potential. However, Roche Holding AG argues that Lucentis was specifically designed to treat eye sickness and is a better alternative than Avastin. Roche's subsidiary Genentech manufactured both drugs.

The pharmaceutical industry is worried that the moves by two of Europe's biggest economies will create a domino effect across the continent and further encourage off-label use to control costs. Since 2010, a number of European countries including Spain, Italy, France, Greece and Ireland have had to cut their health-care spending.

In May, Richard Bergstrom, the director of European Federation of Pharmaceutical Industries and Associations, wrote a letter to Paola Testori Coggi, director general for health and consumers at the European Commission, expressing his concern over what he called the promotion of off-label use by European health-care bodies. Mr. Bergstrom asked the commission to meet with an EFPIA delegation, which Ms. Testori Coggi accepted. A specific date for the meeting hasn't yet been set.

Roche said it is "our obligation to inform the medical community including physicians and patients about the known risks associated with the off-label uses of our medicines." They said they support the position taken by EFPIA that the decision to prescribe off-label medications should be based on medical needs, not financial considerations.

Roche and Novartis have come under scrutiny after Italian antitrust authorities ruled that they were colluding to push doctors to prescribe Lucentis rather than Avastin. Earlier this year, the Italian government decided to seek EUR1.2 billion in damages from the two companies. The Italian antitrust body said the companies presented Avastin as riskier than Lucentis to increase prescriptions for the more expensive approved drug.

Novartis strongly denied the allegations of anticompetitive practices and Roche said the claim was groundless.

Stanimir Hasurdjiev, a board member of the European Patients Forum, an organization that campaigns for patient safety, said off-label drugs shouldn't be prescribed simply because a government faces financial problems. But he said in the case of Avastin there is sufficient proof that it can effectively treat AMD.

"We have enough data published in high-impact scientific magazines from independent researchers showing that the product is safe enough and an effective alternative," he said.

According to Mr. Hasurdjiev, off-label use of Avastin is critical to countries such as his native Bulgaria, where the national health-care provider doesn't pay for Lucentis and patients, many of whom are old people on low state-pension income, can't afford to pay for the more expensive drug out of their own pockets. This leaves doctors with little choice.

"Doctors can take the risk," Mr. Hasurdjiev said. "Or wait until the patient goes blind."

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