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Pharma industry challenges Germany’s drug pricing policy – PMLiVE

Germany’s pharmaceutical trade organisation, the BPI, has challenged the country’s mandatory discounts and price freezes on drugs, arguing that they are no longer justified.

The BPI (Bundesverband der Pharmazeutischen Industrie) made its assertion shortly after the comment period for a second review of the pricing control plan expired on November 23, 2012.

Germany’s 2011 Law for Reforming the Market for Pharmaceuticals (AMNOG or SGB V) introduced higher mandatory insurance costs for its citizens but also did away with free pricing via a new system of federal price controls (G-BA) which links into clinical benefit and the cost of competing medicines.

The government imposed a three-year price moratorium while increasing the discount that manufacturers are obliged to offer state health insurers from 6 per cent to 16 per cent, but also committed to regular reviews of the need for the measures.

Last month, GlaxoSmithKline’s chief executive Andrew Witty appealed to European governments to draw back from price cuts that are eating into profitability and threatening the future of EU-located R&D and manufacturing.

See on www.pmlive.com