German generic drug prices higher than other EU countries
The price of generic drugs in Germany is high in relation to prices in other European countries, according to the 2007 edition of the pharmaceutical prescriptions report (Arzneimittelverordnungsreport, AVR).
The price of generic drugs in Germany is high in relation to prices in other European countries, according to the 2007 edition of the pharmaceutical prescriptions report (Arzneimittelverordnungsreport, AVR).
Despite changes that have affected the German market since 2006, savings of Euro 1.5bn could be ensured by aligning prices of the seven most-sold drugs with the international average, according to Ulrich Schwabe, one of the AVR authors.
For example, a pack of 100 x 20g tablets of the generic version of simvastatin made by Sandoz costs €22.97 (pharmacy delivery price) in Germany compared with €6.93 in Sweden.
The German generic market was shaken up by the AVWG reform of May 2006 relating to generic price competition. Health insurance providers can exonerate subscribers from the obligatory contribution when a drug is bought at a price at least 30% below the reimbursed amount. The obligatory contribution is 10% of the price, with a minimum of €5 and a maximum of €10.
The reform has had a big impact on common cold treatments, resulting in a fall in sales of 24%. Other treatments have also been affected: calcium antagonists (-18%), antibiotics (-13%), antifungals (-12%), urological treatments (-11%) and antiulcer drugs (-10%).
Savings as a result of use of generics have been particularly noticeable in the case of calcium antagonists (€39m), antidepressants (€38m), oral antidiabetics (€35m) and anti-rheumatics (€21m).
However, systematically selling the cheapest generic copy would ensure further savings of €1.3bn, according to Schwabe. The groups of treatments where these further savings lie include opiate analgesics (€326m), beta-blockers (€151m), statins (€108m) and proton pump inhibitors (€92m).
In April 2007, when the WSG reform on competition in health matters came into force, the situation changed again. From that date, pharmacists were under an obligation to sell drugs where health insurance providers signed preferential price contracts with manufacturers.