German Health Minister attacks ‘pharma monopoly’
pharmafile | March 10, 2010 | News story | Sales and Marketing | Germany, cost-effectiveness, price cuts, prices
German Health Minister Philipp Rösler wants to break pharma’s ‘monopolistic hold’ over the country by introducing price limits on new drugs.
In plans announced today Rösler is also seeking to drastically cut the price of drugs already on the market by forcing manufacturers to agree them with the German Treasury.
Rösler says this would ensure a cost-benefit assessment that will save at least two billion euros per year.
Rösler, of the Free Democrat Party, said: “When it comes to spending money afforded to the insured, there can be no ‘blank cheque’ – this applies to the pharmaceutical industry as well.”
His plans would also require pharma to demonstrate how new drugs benefit patients and how they build on existing treatments for the same condition.
Germany’s drug spend has risen to around 30 billion euros, accounting for one fifth of all statutory insurance fund payments and leaving fewer funds for other types of treatment and care.
Pharma critics say the German industry has compounded the problem by bringing to market costly new treatments with little or no benefit over existing drugs.
Industry body the Association of Researched Based Companies (VFA) said it does not believe that drug prices are too high.
Nevertheless, Association’s chairman Cornelia Yzer said the body is not against price negotiations in theory as long as “efficiency and competitiveness remain”.
The proposals, which were leaked earlier this week to the German press, have been criticised by Rösler’s opponents, with Johnannes Singhammer of the Christian Socialist Party dismissing the plans as “weak”.
Rösler and his Free Democrat Party are part of the current German coalition that has seen a number of political flare-ups in recent years. Traditionally, his party is conservative-libertarian and favourable to free markets and big business.
In January of this year, Peter Sawicki, the controversial head of German cost-effectiveness body the IQWiG was ousted from his post, allegedly due to industry complaints over his obstructive nature.
According to some German press reports, Rösler was ‘instrumental’ in the removal of Professor Sawicki.
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