REFERENCE PRICE GROUPS (RPG) DEFINED FROM 2008 TO 2018 IN GERMANY - A DETAILED OVERVIEW AND DISCUSSION
Author(s)
Kuchenbecker U, Konstanski M, Mittendorf T
Xcenda GmbH, Hannover, Germany
OBJECTIVES: Three levels of RPGs exist in Germany: (1) drugs with the same active compound, (2) drugs with pharmacological-therapeutically and chemically comparable active compounds, (3) drugs with different active compounds that are therapeutically comparable. Patent protected drugs may be incorporated into a RPG of level 2 or 3 (`jumbo groups`). There is no standardized process for the time from announcement of a new RPG up to the time when a new price is set. Aim of this study was to analyze historical durations for each procedural step and to evaluate possible influencing factors. METHODS: New RPGs of the last 10 years (cut date April 1, 2019) were analyzed including a qualitative assessment of argumentations by manufacturers from procedural/written statements. RESULTS: In total, n=72 RPGs were analyzed: 53/72 for level 1, 7/72 for level 2, and 12/72 level 3. It took 1.5 years from announcement of a new RPG until setting of the new (reduced) price. For level 1 the mean duration until publication of a RPG was 16 months (range 8-29), level 2 19 months (range 14-26), and level 3 18 months (range 11-26). Still patented drugs were included in 4 of 7 RPGs (57%) in level 2 and in 6 of 12 RPGs (50%) in level 3. Main discussion points, extracted from statements, circled around therapeutic improvements, criticism regarding the methodology applied in the calculation of the RPG and choice of the standard package. There was no correlation between intensity of the discussion and time to price setting. CONCLUSIONS: Building jumbo groups may discriminate innovative pharmaceuticals in pricing. Most patients will not be willing to pay the difference between retail price and reference price. Therefore, pharmaceutical companies need to develop strategies for market differentiation as early as possible to avoid price discrimination for a patent protected drug.
Conference/Value in Health Info
2019-11, ISPOR Europe 2019, Copenhagen, Denmark
Code
PNS168
Topic
Health Policy & Regulatory
Topic Subcategory
Pricing Policy & Schemes
Disease
Multiple Diseases