International Bio News: Germany's New Law May Impede New Drug Launches

This has already led to deterring the release of new drugs into the German market. In the beginning of September, two newly approved drugs were kept from the market as a result of these pricing disincentives. The German company Boehringer Ingelheim and its U.S. partner Eli Lilly recently decided not to launch their new type 2 diabetes drug, Trajenta (linagliptin) in Germany due to the new pricing system. In initial discussions prior to market release, the Federal Joint Committee(G-BA) indicated that Trajenta would not be compared to other gliptins as expected but rather to a generic diabetes drug, in which case it would have to be priced accordingly (press release September 5, 2011)
On September 9, Swiss-based Novartis pulled their new high blood pressure therapeutic, Rasilamlo, from the German market because the company was unable to provide sufficient data for their drug - required as part of the new pricing process. This has created sufficient concern that the new law will be a serious disincentive for approved innovative drugs to be released on the German market. The German Association of Research-Based Pharmaceutical Companies (VFA) has called for fairer pricing rules, but they will most likely be unable to convince the government to revert back to the previous system.




Thank you for this very interesting post! How likely do you think it is that we will see other EU governments following the Germans' lead on this? Are we seeing the beginning of a trend? We know there is no danger of the US following suit as long as the market controls pricing here.
Excellent blog! I have added it to my blogroll at my own site, 2decades.blogspot.com.
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Thank you for your comment. It is possible that other EU governments may follow Germany's example. We will have to wait and see. I agree that the U.S. is unlikely to go along with this type of restriction.
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