Denmark's Novo Nordisk, the world's biggest maker of insulin, said on Monday it would supply its modern insulins to Greece again after the country raised prices on the drugs. Drug prices are in the firing line as European governments tackle runaway budget deficits.

Novo in May suspended the supply of its most modern insulins from Greece, calling a government decision to slash some prices by 25% "unacceptable." Novo said in an emailed statement that Greece, late on Friday, issued a new price bulletin, effective June 14, for 48 insulin products including Novo's modern insulins and pen-based insulins.

Novo said the new prices are higher than those dictated by the decree which took effect on May 3, but lower than the average of the three lowest prices in Europe, a level Novo had argued is reasonable.

"However, the government has stated it will base future prices in Greece on the average of the three lowest prices in Europe in an upcoming price decree, which it plans to have in place by Sept. 1 at the latest," it said. "We have therefore accepted the new temporary prices. As a result, we expect that all pharmacies will soon be able to deliver the full range of Novo Nordisk insulin products in Greece," Novo said.

It said on June 10 it would supply drugs as normal again if Greece changed the price formula to use the average from the three countries that out of 22 European nations have the lowest prices.