OBJECTIVES: Price capping of generics against the originator (also known as price linkage) has been in use for some time despite studies questioning its efficacy as a cost-containment mechanism. In particular, a 2007 study from Norway – where internal reference and generic price linkage to the originator co-existed for some time - found that both originator and generic prices fell significantly, but the price decline impact was sharper for originator drugs in the reference pricing group than in the price caps group. This study seeks to evaluate if price capping remains a policy of choice in the current austerity climate. METHODS: Research focused on a review of current pricing and reimbursement (P&R) regulations for generics in European Union countries and major markets outside the EU to identify which countries have adopted or are in the process of adopting new price caps or have amended existing price caps for generics versus the originator from the start of 2010 to date. The review includes both original laws related to price capping and interpretation of the place of price linkage in each country’s pharmaceutical P&R system from secondary sources and from IHS Global Insight’s proprietary Same Day Analysis archive. RESULTS: France, Portugal, Hungary, the Czech Republic, Romania, Slovakia, Greece, Japan and Canada are among the countries which have recently amended their use of price linkage in an attempt to contain pharmaceutical spending. CONCLUSIONS: While price caps remain popular, it is rare for countries to use them in isolation. Internal reference pricing is typically also in use. Among countries which have recently made changes to their price linkage system, Romania, Hungary and Poland have also undertaken changes to their internal reference pricing system, as governments attempt to tackle the cost-containment paradigm from all sides.