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Pharmaceutical Prices: The Impact of the Launch Strategy - An Analysis of German Data

Author

Listed:
  • Yvonne-Beatrice Böhler
  • Christian Lamping
  • Philipp Christoph Wichard
  • Philipp Christoph Wichardt

Abstract

This paper reports the results from a statistical analysis of pharmaceutical price negotiations in Germany, where the pricing system was changed in 2011 in order to tie prices more to the benefits of the pharmaceuticals. A multiple linear regression of 187 pharmaceuticals which were assessed from 2011 to 2017 suggests that, despite the change, the manufacturers' launch strategy (freely chosen first year price) still has a major impact on pricing while the impact of the additional benefit remains comparably small. Moreover, the data suggest that the assessment of the Federal Joint Committee - while not yet existing at the point - best explains the manufacturer's launch strategy, indicating that manufacturers know more than they reveal.

Suggested Citation

  • Yvonne-Beatrice Böhler & Christian Lamping & Philipp Christoph Wichard & Philipp Christoph Wichardt, 2019. "Pharmaceutical Prices: The Impact of the Launch Strategy - An Analysis of German Data," CESifo Working Paper Series 7879, CESifo.
    • Handle: RePEc:ces:ceswps:_7879
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp7879.pdf
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    References listed on IDEAS

    as
    1. Katharina E. Fischer & Tom Stargardt, 2014. "Early Benefit Assessment of Pharmaceuticals in Germany," Medical Decision Making, , vol. 34(8), pages 1030-1047, November.
    2. Ulrike Theidel & J-Matthias Graf von der Schulenburg, 2016. "Benefit assessment in Germany: implications for price discounts," Health Economics Review, Springer, vol. 6(1), pages 1-12, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    AMNOG; early benefit; assessment; pharmaceuticals;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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