OBJECTIVES:  To ensure financial stability in the pharmaceutical system, governments introduced cost-containment measures, including austerity measures, such as price cuts and mandatory discounts. These policies are highly likely to negatively impact pharmaceutical companies that could result in closures of national subsidiaries or reduction of staff. This research aims at collecting evidence on observed consequences in recent years. METHODS:  We surveyed the development of performance indicators of the pharmaceutical industry (sales, staff, subsidiaries) as well as major cost-containment measures through a questionnaire with competent authorities on pricing and reimbursement in 46, mainly European, countries. RESULTS:  Responses were received from 14 countries (thereof 10 EU Member States, 2 EFTA countries, Canada and Russia). Major cost-containment measures reported included price revisions/reductions (Canada) and/or price cuts (Cyprus, Czech Republic), introduction of statutory claw backs (Austria, Hungary), change in reference countries (Estonia) and the introduction of the preferential price policy (The Netherlands). 6 countries did not report any deterioration of pharmaceutical industry’s industry, whereas negative developments in the pharmaceutical sector were observed in Canada, Hungary, Norway, Spain and Switzerland. Reasons indicated for these developments included the global economic downturn (Canada), market consolidation processes (Canada, Spain) and the strategic decision taken by national representatives of generic companies to close their sales or market access departments (Norway, Switzerland). When they announced cost-containment measures, governments were frequently confronted with opposition of pharmaceutical industry (e.g. media campaigns, legal challenges) who expressed their concern of negative consequences for the performance of the pharmaceutical sector. In two countries (Hungary, Spain) industry proposed alternative solutions to prevent the implementation of planned cost-containment measures. CONCLUSIONS:  While cost-containment measures contributed to impact negatively the performance of pharmaceutical industry in some cases, their consequences appeared to be less severe than previously expected. This suggests that cost-containment is less relevant than other performance-impacting factors.