LONDON, UK (GlobalData), 21 August 2012 - The European Union (EU) faced further fallout from the global financial crisis this year, and the region’s healthcare industry has seen pricing changes to reflect this, claims a new report by healthcare experts GlobalData.
Global Healthcare Policy Analysis 2012 – Regulatory, Pricing, and Reimbursement Assessment, states that the on-going sovereign debt crisis is directly affecting the European healthcare sector, as government solutions to money worries in Spain, Portugal, Italy, and especially Greece, include cost-cutting in national healthcare programs as an important aspect.
GlobalData’s senior analyst for healthcare industry dynamics, Michael Leibfried, MBS, states: “The largest issue facing the pharmaceutical industry in the European Union (EU) is renewed pricing pressure from all directions.” Greek pharmacies have been cutting drug prices so that individuals can afford their medications, but this has led to a lucrative export carry trade, and shrinking prices in other countries due to reference pricing.
The United Kingdom and its National Institute for Health and Clinical Excellence (NICE) have been compelling companies to lower drug prices for years; however a new pricing regime in the region’s largest market, Germany, is creating new headaches. Like other developed economies, Germany has been facing substantial increases in healthcare costs, outpacing the country’s economic growth. The German Law for Reforming the Market for Pharmaceuticals (AMNOG) shows the German parliament addressing the rise in healthcare spending by increasing the mandatory health insurance charge through a tax increase on all workers to pay for public healthcare. Controversially, the law mandates that future increases must be shouldered entirely by employers.
However, one provision of AMNOG is the introduction of price controls into Germany’s pharmaceutical market, which is the third largest pharmaceutical market in the world, and this policy has been favorably looked upon by many neighboring countries as a solution to control rising healthcare costs.. New branded pharmaceuticals have gone from having market pricing, to judgement by the Federal Joint Committee (Der Gemeinsame Bundesausschuss, or G-BA) on evidence of clinical benefit. This, given time, may return drug pricing to normality in Europe.
*Global Healthcare Policy Analysis 2012 – Regulatory, Pricing, and Reimbursement Assessment
This report provides an in-depth look at the policy initiatives and regulations shaping pharmaceutical markets around the world. Focusing on the global regulatory landscape in 2012, the report integrates in-depth research into the policies of major international markets with expert insight to reveal the opportunities and threats that the pharmaceutical industry is facing. Clients can use this report for strategic planning to tackle the challenges of developed markets and discover prospects in emerging markets. The report covers major healthcare policy initiatives, regulatory changes and key drug approvals, and examines the myriad of regulatory issues that are constantly affecting pharmaceutical and biotechnology players.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
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