Could Germany’s Proposed Drug Pricing Reform Impact United States?

The German committee responsible for assessing drug efficacy and setting prices may cut the initial 12-month review time by 50%. Shortening this post-launch window used to understand how a drug performs in the real world relative to existing alternative therapies could impact payers, pharma, and patients. President Biden recently expressed interest in the German approach to drug price control.

“The German committee in charge of drug pricing and reimbursement is now recommending that the 12-month period be cut in half, and that the final reimbursement price be applied retrospectively to adjust for any discrepancies between the initial and reset prices. If ultimately approved, this proposal will create cost savings for German health insurers, particularly in those instances when a drug is ultimately judged to be no better than what’s already on the market.” Read more here.

(Source: Francesca Bruce, Pink Sheet, 5/18/21)