USA plan a Europe-like reference price system for innovative drugs - impact of German price increases globally
About the author
Prof. Matthias P. Schönermark, M.D., Ph.D.
Founder and Managing Director
Founder and Managing Director
Fon: +49 511 64 68 14 – 0
Fax: +49 511 64 68 14 18
Fax: +49 511 64 68 14 18
The idea behind this legislative initiative is a principle which has been long established throughout Europe as well as in Japan: the respective prices from a set of different countries are fed into an algorithm which calculates one reference base for the individual national market. An analysis of the HHS has shown that the US drug prices are up to five times higher than the average price from a basket of 16 industrial countries. The Trump administration plans to introduce the new system by the end of next year and expects to save up to US$ 17.2 billion per year.
The AMNOG–based German price will be part of this basket. As 14 other of the included 16 reference countries reference on their part the German price (incl. Japan), the German price building mechanism, based on a benefit assessment and a subsequent price negotiation with the umbrella organization of the German health insurances becomes more and more important. On the largest global pharmaceutical market, the US, the German price building system could lead to significant economic collateral effects, which require a thorough analysis and deep understanding of the underlying mechanics.
SKC consulting is the leading strategy consultancy in the German health care system. Since 2005, we are supporting pharmaceutical, medical- and biotechnological companies with their strategic pricing and market access in Germany and Europe. Please find more information at our service portfolio.
BY Prof. Matthias P. Schönermark, M.D., Ph.D., managing director
Sources:
The New York Times: Trump Proposes to Lower Drug Prices by Basing Them on Other Countries’ Costs