Pharmaceutical Pricing in Germany- How Is Value Determined within the Scope of AMNOG?

Jul 1, 2017, 00:00
10.1016/j.jval.2017.04.006
https://www.valueinhealthjournal.com/article/S1098-3015(17)30206-1/fulltext
Title : Pharmaceutical Pricing in Germany- How Is Value Determined within the Scope of AMNOG?
Citation : https://www.valueinhealthjournal.com/action/showCitFormats?pii=S1098-3015(17)30206-1&doi=10.1016/j.jval.2017.04.006
First page : 927
Section Title : HEALTH POLICY ANALYSIS
Open access? : Yes
Section Order : 11

Objectives

To analyze how value is determined within the scope of the German Pharmaceutical Restructuring Act, which came into effect in 2011.

Methods

Using data from all pharmaceuticals that had undergone assessment, appraisal, and price negotiations in Germany before June 30, 2016, we applied generalized linear model regression to analyze the impact of added benefit on the difference between negotiated prices and the prices of comparators. Data were extracted from the Federal Joint Committee's appraisals and price databases. We specified added benefit in various ways. In all models, we controlled for additional criteria such as size of patient population, European price levels, and whether the comparators were generic.

Results

Our regression results confirmed the descriptive results, with price premiums reflecting the extent of added benefit as appraised by the Federal Joint Committee. On the substance level, an added benefit was associated with an increase in price premium of 227.2% (P P = 0.019).

Conclusions

Price premiums, or “value,” are driven by health gain, the share of patients benefiting from a pharmaceutical, European price levels, and whether comparators are generic. No statement can be made, however, about the appropriateness of the level of price premiums.

Categories :
Tags :
  • early benefit assessment
  • Germany
  • price negotiation
  • value-based pricing
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