German Pricing Plan Avoids Terrible Twos, But More Growing Pains Ahead
In the two years since Germany’s reimbursement process for new drugs turned Europe’s largest market into one of the toughest, the impact on pricing hasn’t been as bad as many expected. But there’s more to come, with several on-market categories slated for retrospective review, and even mandatory rebates could follow.
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Novartis has withdrawn its oral anti-diabetic Galvus from the German market after failing to secure a mutually beneficial price with payers. Galvus is the only drug dropped from reimbursement under a since-repealed policy to assess added benefits of brand drugs marketed before 2011.
The German pharmaceutical market has dealt impressively with the government’s cost-cutting measures, but they are beginning to take their toll on R&D and innovation, industry maintains.
Sanofi’s recent reduction of the Zaltrap price after the Memorial Sloan-Kettering Cancer Center said it would not provide the drug to its advanced colorectal cancer patients due to its high cost relative to Avastin highlights the role cost and available clinical evidence will have as payers make value-based purchasing decisions.