German pharma counts cost of drug price controls, calls for review

The clamour against the recent drug pricing reforms in Germany has grown steadily louder. Last week Eli Lilly’s chief executive called for an overhaul of AMNOG, the complex new vetting procedure that determine whether a new drug provides an additional benefit, and, consequently, its market price (The Pharma Letters July 11, January 28). In addition, the German Pharma Association VFA has highlighted the cost of the price freeze and increase in the mandatory discount pharma firms are obliged to offer the state health insurance system, and called for a review of the policy.

From August 1 last year, the compulsory discount was hiked from 6% to 16%, and at the same time a price freeze based on August 2009 levels was introduced. These are supposed to last until December 31, 2013. However, the law says that the increased discount is to be reviewed annually, as a VFA policy statement points out.

What’s more, the fact that the economy and state health insurance system are in much better shape than predicted last year gives the government financial leeway, notes the VFA. There were 3 billion euros ($4.28 billion) more in the state health system’s coffers at the end of 2010 than had been predicted a year earlier.