LINEAR, FLAT AND MIXED PRICING STRUCTURES AS NEGOTIATION QUANTITIES OF NEW MEDICINAL PRODUCTS IN CONTEXT OF AMNOG IN GERMANY- A COMPARISON AT MARKET LAUNCH AND POST PRICE NEGOTIATIONS

Author(s)

Bot D, Campion M, Ecker T
Ecker + Ecker GmbH, Hamburg, Germany

OBJECTIVES:  Within the framework of AMNOG price negotiations between pharmaceutical manufacturers and SHI (National Association of Statutory Health Insurance Funds), a relevant quantity for both parties is the pricing structure of the reimbursed price after negotiations. While the SHI generally favors a linear pricing structure (price increases with dose), the choice of pricing structure by manufacturers between flat pricing (identical price for different doses), linear pricing or a combination of the two (“mixed pricing”) depends on different parameters such as indication, expected physicians’ prescription behavior or conditions of parallel trade issues due to the European reference pricing. The objective of this study is to assess if manufacturers could maintain their favored pricing structure for new pharmaceuticals at market launch in Germany after price negotiations. METHODS:  Analysis is based on all price negotiations concluded until June 2016 in which manufacturers entered into either with a linear, a flat or a mixed pricing structure. Negotiations were excluded in this analysis if the respective drug was available only in one dose or if the drug has been withdrawn from the market before negotiation started. Afterwards, the selected negotiations were analyzed by comparing initial ex-factory prices of all packages for each drug at market launch and final prices after negotiations. RESULTS:  47 relevant negotiations were identified. Manufacturers could maintain their favored pricing model in 38 negotiations (linear pricing=17, flat pricing=18, mixed pricing=3) while pricing structures switched in 9 negotiations (linear to flat pricing=1, linear to mixed pricing=1, flat to linear pricing=6, flat to mixed pricing=1). CONCLUSIONS:  In price negotiations with the SHI, manufacturers can mainly maintain their favored pricing structure for a new pharmaceutical in the German market. Even a flat pricing, although resulting in certain cases to additional expenditures for the SHI, has a high probability of being accepted in negotiations.

Conference/Value in Health Info

2016-10, ISPOR Europe 2016, Vienna, Austria

Value in Health, Vol. 19, No. 7 (November 2016)

Code

PHP161

Topic

Health Policy & Regulatory

Topic Subcategory

Reimbursement & Access Policy

Disease

Multiple Diseases

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