Germany Implements Government Control of Pharmaceutical Prices

Germany’s new pharmaceutical price control scheme requires manufacturers to negotiate product prices with the state insurance agency, ending their ability to name their own prices. The government’s control on pharmaceutical pricing began in early January. Under the restructuring, if an innovative drug proves more beneficial than existing treatments, the manufacturer will negotiate the product’s price with the Joint Committee on Healthcare, based on an assessment of the added value. If the drug is not a better treatment option, its cost will be set at a fixed price, limiting the amount to similar treatments in its class.
International Pharmaceutical Regulatory Monitor