AstraZeneca And Bristol-Myers Pull Diabetes Drug From Germany Over Pricing Decision

Once again, drugmakers are at war with the German authorities over pricing. In the latest row, AstraZeneca (AZN) and Bristol-Myers Squibb (BMY) have yanked their Forxiga diabetes treatment, which was approved in Europe a year ago, over disagreements about the price of the drug, but will reconsider their decision after arbitration has concluded, according to a statement. Specifically, the move comes after the drugmakers were unable to reach an agreement with the National Association of Statutory Health Insurance Funds after the German Federal Joint Committee issued a so-called ‘no additional benefit’ rating for the treatment, which is a SGLT-2 inhibitor. Coincidentally, an FDA panel late last week recommended marketing approval. The decision reflects ongoing tension among cash-strapped European governments and the pharmaceutical industry over pricing for medicines. The issue has been a fixture of relations in the UK, where drugmakers regularly complain that regulators are too stringent in deciding reimbursement qualifications amid chatter that drug development in the country may eventually be affected (back story). The tussle is increasingly playing out in Germany, as well. Two years ago, the government began comparing the benefits of newly approved drugs with existing medicines and gave insurers the ability to bargain over price. This has irked drugmakers. In response, Eli Lilly (LLY) and Boehringer Ingelheim decided not to launch their Trajenta diabetes drug there (see t...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs