Study on drug price negotiations

Results presentation at the Deutsche Gesellschaft für Gesundheitsökonomie annual conference on 17 and 18 March 2015

The German pharmaceuticals market reorganization act “Arzneimittelmarkt-Neuordnungsgesetz“ (AMNOG) came into force on 1 January 2011. Ever since, the Federal Joint Committee (G-BA) has been responsible for carrying out an additional benefit evaluation for all newly approved pharmaceuticals that contain new active ingredients after these have been launched in the market. To facilitate this, pharmaceutical companies submit a dossier to the G-BA, which is evaluated by the Institute for Quality and Efficiency in Health Care (IQWiG) as an expert assessor. If a drug is found to have a positive additional benefit, the National Association of Statutory Health Insurance Funds (GKV) enters into price negotiations with the company that manufactured it to negotiate a discount on the selling price previously set by the manufacturer.

Numerous drugs have been subjected to this process since AMNOG came into force. A team of Fraunhofer MOEZ and Leipzig University researchers has now quantitatively examined the already completed evaluations. The aim of the analysis was the identification of factors that lead to discounts in the price negotiations. For this purpose, the most important key figures were extracted from the dossiers submitted by the pharmaceutical companies, the IQWiG expert assessments and the G-BA resolutions for all evaluations started between January 2011 and March 2014 and subsequently analyzed. In addition, the annual cost of treatment with these drugs was compared to the annual cost of treatment with suitably comparable drugs in order to find out which factors resulted in higher costs.

The results of this empirical study will be presented at the 2015 annual conference of the Deutsche Gesellschaft für Gesundheitsökonomie (German society for healthcare economics) on 17 and 18 March 2015 in Bielefeld.