Pharmaceutical Reform 2010 in Germany: Striking a Balance Between Innovation and Affordability
(2011; 3 pages)


The German Parliament passed a reform aiming to reorganise the regulatory framework for pharmaceuticals in order to curb growing expenditure. For the first time, all newly-licensed pharmaceuticals will be subject to benefit assessment. While pharmaceuticals without added benefit compared to treatment alternatives should be included in the reference pricing system, innovative pharmaceuticals with clear added value should be subject to price negotiations. Earlier cost-containment measures reinforce rebate contracts and introduce a three-year freeze on pharmaceutical prices.

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