Drugmakers Criticize German Proposal for $381 Million Revenue Ceiling on Drugs

Drugmakers have expressed concern about the German government’s proposal to restrict drug pricing — contending that the measure penalizes research and development.

Capping drug revenues for newly approved treatments is an unbalanced approach to contain treatment costs that disregards drug discovery, Dieter Weinand, Bayer’s head of the pharmaceuticals division, said.

Current German regulations allow drugmakers to charge insurers full price for treatments in their first year on the market. Germany is proposing to enact a threshold that would trigger price negotiations for new treatments that reach a revenue ceiling of roughly $381 million.