Many countries in Europe, which have significant pharmaceutical indust
ries, recently have embarked on reforms in the organization of their h
ealth care systems and methods of regulating the pharmaceutical market
. This paper describes the different systems in major European countri
es and the changes taking place. Although it is too early to make fina
l judgment on the impact of these changes, it is possible to predict s
ome of the more likely outcomes. The organizational models and regulat
ory approaches in Europe offer a useful store of experience for those
assessing the potential impact of reform proposals in the United State
s.