The Orbán government is setting its sights on Big Pharma, floating the idea of a profit cap on certain medicines after a sharp jump in prices rattled both consumers and policymakers.
April saw pharmaceutical prices spike by 3.6% compared to March—the steepest month-over-month rise in nearly two decades, according to the Hungarian news outlet Portfolio. Year-over-year, the cost of medicines climbed 5%, igniting concerns inside the government about affordability and market manipulation.
In a social media post, Economic Development Minister Márton Nagy revealed that he recently met with Dávid Greskovits, head of the Hungarian Pharmaceutical Manufacturers’ Association (MAGYOSZ), to discuss the inflationary trend, particularly for non-subsidized medicines—a segment less tightly regulated than prescription drugs covered by Hungary’s national health insurance.
This wouldn’t be Hungary’s first go at price control. The Orbán administration has previously imposed profit limits on food, hygiene products, and banking fees in a bid to tame inflation and protect consumers. Now, with medicines under the microscope, the government appears ready to extend its interventionist streak into the pharmaceutical industry.
While prescription medications in Hungary are generally protected from wild price swings—thanks to strict inclusion criteria and state subsidies—non-prescription drugs operate in a much freer market. That’s where price hikes have been most noticeable, and where the government might impose new rules.
But here’s the rub: capping profits in this sector is risky business. Industry experts warn that such a move could backfire if pharmaceutical companies decide it’s no longer worth selling certain products in Hungary. Without viable alternatives—especially among subsidized options—patients could find themselves with fewer choices or even face medicine shortages.
“If drug makers feel there’s no return on investment, they may simply pull out,” analysts caution, suggesting that rash decisions could hurt the very people the policy aims to protect.
MAGYOSZ has already been brought into discussions, but the government may also need to engage with the Association of Innovative Pharmaceutical Manufacturers (AIPM), which represents a large portion of market activity. Whether dietary supplements, vitamins, and over-the-counter remedies will also fall under scrutiny remains an open question.
So far, there’s no word on the exact margin cap or how it would be implemented. But with inflation lingering and pharmaceutical prices climbing fast, the Orbán government appears poised to act.
Whether this gamble pays off—or sparks a pharmaceutical retreat—will depend on how delicately the government balances regulation with market realities. One thing’s certain: Hungary’s clash with Big Pharma is just heating up.
