German Generics Producers Charge Discrimination

German generic drugmakers are annoyed at plans by the new Christian and Social Democrat coalition government to increase the mandatory rebate afforded the country's national healthcare companies because they say it discriminates against their products.

The coalition has said it will extend the price freeze for pharmaceutical products, implemented in 2009, to 2017 while at the same time raising the healthcare rebate to 7%.

Under the plans, producers of patented drugs would be granted relief from what drugmakers have claimed is excessive testing. In future, only new medicines coming on the market must be tested, which is estimated to save the industry around €500 million annually.

In the past, all patented medicines had to be tested before new prices were negotiated. Generics producers say they will not profit from this practice, but still will be obliged to grant the higher rebate.

The generics producers association, Bundesverband der Arzneimittelhersteller, remarking that prices already are under pressure from the price freeze and rebate, has suggested that the coalition's legislative initiative could violate the German constitution.