Germany's Top Insurer Reveals Winners of Generic Discount Contracts; Losers Appeal
This article was originally published in The Pink Sheet Daily
Germany's largest insurer AOK has announced the winners of its two-year, price-driven generic supply contracts, but court appeals by disgruntled losers threaten the system.
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Germany’s discount contracts have secured huge savings for health insurers and the government, but are forcing generics manufacturers to reduce portfolios or leave the market altogether.
Regional firm wins an important tender, but at a discount that is so steep it attacks the process as creating "only losers."
As Germany's insurers try out new drug reimbursement tactics, innovative pharmas have responded with novel, brand-boosting payor deals of their own. The evolution of these payor-pharma deals in Germany should inform reimbursement strategies elsewhere--including in the US where similar trends are starting to emerge.