700M euros in German rebates paid, 300M to go

We've all heard the percentages from the German government: Health reforms boosted rebates by 10 percent in August, to 16 percent from 6 percent. The pricing move is designed to save Germany more than €1 billion by the end of this year--but it also puts the squeeze on drugmakers.

Over the first nine months of the year, pharma shelled out €700 million in rebates to the German government. So that leaves another €300 million to be paid by year's end. And this, of course, is just the beginning. More stringent price pressures kick in next year, including a broadening of the reference price system to cover more drugs. Starting in January, branded drugmakers will have to negotiate prices with the government's health insurance system.

An industry group in Germany warns that, while the price moves put the squeeze on Big Pharma, too, it's the small- and medium-sized companies that will suffer most. No word on whether the government plans to do anything about it.

- read the PharmaTimes story

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