Reimann: Every new drug needs a fair price
19.07.2023 09:48
Commenting on the latest proposal from the Association of Research-Based Pharmaceutical Companies (VFA) for a round table to strengthen Germany as a pharmaceutical innovation location, Dr. Carola Reimann, Chairwoman of the AOK Federal Association:
“There has already been a pharmaceutical dialogue in the past, but with questionable added value. If a new attempt is now called for in the form of a round table, then the astronomical starting prices for new medicines should be openly discussed here. We need to talk about fair pricing models, the ethical and economic limits of profit margins, and actual research and development costs. It cannot be the case that pharmaceutical companies continue to maximize their profits at the expense of those paying contributions by charging for public research funding again.
In order to counter the trend towards high prices for medicines, there is a solution with the interim price from market entry, which we presented three years ago. It is not enough that the negotiated reimbursement amount for new drugs will apply after seven months after market entry instead of the current twelve months. That's because manufacturers can still make big profits for six months on the prices they set, regardless of whether the new drug adds value to the supply or not.
However, for fair pricing, more is needed, especially more transparency regarding the actual costs of research and development, but also the profit margins. Profits in the pharmaceutical industry have so far been made possible through support from the public sector, for example through research and location funding as well as tax advantages. In the Medicines Compass 2021 published by the AOK Scientific Institute (WIdO) with the focus on “High-priced medicines – challenges and perspectives”, corresponding regulatory proposals for adjustment have already been made. A basic profit of eight percent could be granted on all investments and costs of pharmaceutical companies. Real therapy innovations would also be rewarded with a surcharge of up to 40 percent on the costs. This creates an incentive for research and development and makes a decisive contribution to stopping excessive maximum prices.”