“In effect, the United States has changed Europe’s pharmaceutical policy without a single German law being amended,” says Dr. Roman Hipp, Senior Partner at Porsche Consulting, in an interview with the German business newspaper Handelsblatt. The Handelsblatt recently reported on the adjustment of the mandatory drug manufacturer rebate. The decision provides greater planning certainty for pharmaceutical companies. However, it is not enough to strengthen Germany as a pharmaceutical hub.
Under the rebate system, pharmaceutical manufacturers are required to reimburse a portion of their revenue to Germany’s statutory health insurance funds. Initially, the rebate was designed to increase flexibly over time. Many companies criticized this approach because it made investments in manufacturing and research and development difficult to plan and forecast. Not only for German companies, but for international pharmaceutical companies as well.
At the same time, international pressure is mounting. The United States no longer wants to effectively subsidize lower drug prices abroad and is increasing pressure on pharmaceutical pricing in Europe. This shift is also changing the competitive landscape for Germany’s pharmaceutical industry.
The commentary by Helena Smolak in Handelsblatt analyzes the recent policy decisions and their implications for Germany as a pharmaceutical hub (German only).