OBJECTIVES This study seeks to evaluate the incremental benefit scores granted to new medicines under the 2011 AMNOG reform in Germany, and if there is a correlation between that score and the extent of price reduction after negotiation with the statutory health insurance fund. METHODS Resolutions issued by the G-BA related to all drugs which achieved the early benefit assessment process between January 2011 and June 2014 were reviewed to determine whether the drugs were deemed to bring an added benefit. Under AMNOG, an added therapeutic benefit score is granted to medicines according to 6 categories (major, considerable, minor, non-quantifiable, no or less added benefit versus the comparator). As part of the study, IHS created an overall quantitative innovation score for each product, based on any and all qualitative ratings granted by the G-BA in each patient subgroup. The score ranged from 0 (no added benefit proven) to 4 (major added benefit) and was weighted against each patient population. An average price reduction per innovation score range was then calculated. RESULTS Out of the 76 drugs assessed in the study, a total of 44 were deemed to bring an added benefit over the appropriate comparator by the G-BA, of which 34 had achieved price negotiation as of end of May 2014. These ratings translated into an average innovation score of 1.77, and were subject to price cuts averaging 21.7%. CONCLUSIONS Our analysis highlights that innovative medicines can be subject to significant price cuts in Germany. No correlation between the innovation score and subsequent price cuts could be derived, as many other factors, including the initial price difference between the new medicine and the comparator, enter into account as part of the price negotiations.