Drug makers telling Greeks to pay upfront

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The European debt crisis is hitting close to home for Bay Area pharmaceutical companies, with unpaid bills from Greece, Spain and Portugal piling so high that some drugmakers are now insisting on payment upfront.

Genentech Inc., Gilead Sciences Inc., BioMarin Pharmaceutical Inc and Bio-Rad Laboratories Inc. are among the companies waiting for millions of dollars from cash-strapped southern European countries, according to recent Securities and Exchange Commission filings.

At BioMarin, Greece’s inability to pay for its products has the company requiring that the Greek government pay for all drug purchases upfront, said Stephen Aselage, the Novato-based company’s chief business officer.

“Greece pays us in advance, more than a year in advance,” Aselage said. “It’s fairly rare that we would set that up.” Due to the centralized health care system in Greece, most BioMarin products are bought directly by the Greek government.