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GermanyPosted 22/10/2013
First posted: 26 September 2013 Germany is a mature market* in the use of generic medicines. Generic medicines have been in use in Germany since 1974 [1].
The pharmaceutical industry in Germany is among the most powerful in developed countries and contributes significantly to the export market [2]. In 2004, pharmaceutical exports amounted to Euros 13.1 billion [3]. Germany has the third-highest healthcare expenditure among OECD countries [4]. Annual healthcare expenditure amounts to approximately Euros 245 billion or around 11% of the gross domestic product [5]. Therefore it is not surprising that in comparison with other Western European countries, Germany spends somewhat more on medicines. In 2008, a total of 15.1% of the total healthcare budget was spent on medicines compared to only 9.8% in The Netherlands and 7.7% in the UK [6]. In 2009, Euros 32.4 billion was spent on medicines by Germany, representing an increase of nearly Euros 5 billion on that in 2008 [7]. However, this was still less than that in 2005, when Euros 39.5 billion was spent on medicines by Germany [2]. Germany has the largest generics market in Europe [3], and, after the US and Japan, is the country with the largest share of generics in the world. The generics culture is strong in Germany [8]. Four years after launch, generics attain an average penetration of 45% compared to 35% in The Netherlands [9]. German physicians write around half of their prescriptions with generics, although the government has set a target of 70%. Germany’s reference pricing system, which removes the incentive to reduce prices, and a dearth of physician incentives to contain costs make the German generics market second only to the US in terms of value. Indeed, Germany is a relatively high price market even for generics [9]. In 2008 over 76% of prescriptions in Germany were dispensed as generics, accounting for 36.8% of the market value [10]. According to BKK Bundesverband, one of the organizations that funds German heath care, the generics discount is just 20–25% compared to the branded product following patent expiry [9]. The branded generics market is strong in Germany and most generics players already promote to physicians. This is a key advantage for generics firms already in the German market: promotion and detailing is expected to be crucial to success in the biosimilars market. High biologicals use, high prices, high growth and widespread acceptance of generics make Germany a very attractive market for biosimilars [9]. Germany has a high number of generics producers present in the market, making the generics segment of the pharmaceuticals market in Germany appear rather fragmented [10]. Key facts – contribution of generic medicines to Germany *A mature generics market is one where generics have been on the market for more than 10 years and where the market share of generics exceeds 40% [18]. References 1. Deutscher Generikaverband. [FAQ for Patients]. FAQ für Patienten [FAQ for Patients] [homepage on the Internet]. Deutscher Generikaverband [cited 2013 Sep 26]. German. Available from: www.generika.de/?op=faq_patienten#WievieleGenerikaherstellergibtesinDeutschland 2. European Commission. Pharmaceutical Pricing and Reimbursement Information project: Germany. May 2008. 3. European Commission. Österreichisches Bundesinstitut für Gesundheitswesen (ÖBIG). Surveying, assessing and analysing the pharmaceutical sector in the 25 EU Member States [homepage on the Internet]. 2006 Jul [cited 2013 Sep 26]. Available from: http://ec.europa.eu/competition/mergers/studies_reports/oebig.pdf 4. Schreyögg J, Grabka MM. Copayments for ambulatory care in Germany: A natural experiment using a difference-in-difference approach. Discussion Paper No. 777. Deutsches Institut fur Wirtschaftsforschung (DIW), Berlin. 2008. 5. Facts and figures on Germany’s health care system [monograph on the Internet]. Bundesministerium für Gesundheit (BMG). 2010. [cited 2013 Sep 26]. Available from: http://www.bundesgesundheitsministerium.de/cln_151/nn_1493786/EN/Gesundheit/gesundheit__node.html?__nnn=true#doc1493940bodyText1 6. Nefarma. [Facts and figures]. Feiten en cijfers [homepage on the Internet]. 2011 [cited 2013 Sep 26]. Dutch. Available from: www.nefarma.nl/feiten-en-cijfers 7. Arzneiverordnungsreport 2010 – hohe Arzneimittelpreise belasten Kassen [page on the Internet]. Finanz-Ratgeber.de [cited 2013 Sep 26]. German. Available from: www.finanz-ratgeber.de/news/arzneiverordnungsreport-2010-hohe-arzneimittelpreise-belasten-kassen_2010-09-14.html 8. Generika sorgen für Einsparungen [monograph on the Internet]. Germany, Krankenkassen Ratgeber; [cited 2013 Sep 26]. German. Available from: www.krankenkassenratgeber.de/medikamentenausgaben/generika-sorgen-fuer-einsparungen.html 9. Pisani J, Bonduelle Y. Opportunities and barriers in the biosimilar market: evolution or revolution for generics companies? [monograph on the Internet]. Brussels, Belgium, European Generic medicines Association (EGA); 2006 [cited 2013 Sep 26]. 10. Glowicka E, Lorincz S, Pesaresi E, Sauri Romero L, Verouden V. Generic entry in prescription medicines in the EU: main characteristics, determinants and effects [homepage on the Internet]. 2009 Jul 8 [cited 2013 Sep 26]. Available from: www.ec.europa.eu/dgs/competition/economist/prescription_medicines.pdf 11. Gesundheitsberichterstattung des bundes (gbe-bund). [Generic drugs that were prescribed at the expense of public health insurance]. Generikapräparate, die zu Lasten der gesetzlichen Krankenversicherung verordnet wurden [homepage on the Internet]. 2010 [cited 2013 Sep 26]. German. Available from: www.gbe-bund.de/oowa921-install/servlet/oowa/aw92/dboowasys921.xwdevkit/xwd_init?gbe.isgbetol/xs_start_neu/&p_aid=3&p_aid=79364523&nummer=356&p_sprache=D&p_indsp=-&p_aid=78195771 12. Garattini L, Motterlini N, Cornago D. Prices and distribution margins of in-patent drugs in pharmacy: a comparison in seven European countries. Health Policy 2008;85(3):305-13. 13. Simoens S. International comparison of generic medicine prices. Curr Med Res Opin. 2007;23(11):2647-54. 14. ABPI. Did you know? Facts and figures about the pharmaceutical industry in the UK [homepage on the Internet]. London: The Association of the British Pharmaceutical Industry; 2010 [cited 2013 Sep 26]. Available from: www.abpi.org.uk/our-work/library/industry/Documents/Did%20you%20know_Jan11.pdf 15. Gesundheitsberichterstattung des Bundes (gbe-bund). [Savings potential of generic drugs in millions of euros]. Einsparpotentiale von Generika in Mio. Euro [homepage on the Internet]. 2010 [cited 2013 Sep 26]. German. Available from: www.gbe-bund.de/oowa921-install/servlet/oowa/aw92/dboowasys921.xwdevkit/xwd_init?gbe.isgbetol/xs_start_neu/&p_aid=i&p_aid=79364523&nummer=602&p_sprache=E&p_indsp=-&p_aid=97593504 16. Schwabe U, Paffrath D. Arzneiverordnungs-Report 2010. Springer Berlin Heidelberg; 2010. 17. Simoens S, De Coster S. Sustaining generic medicines markets in Europe [monograph on the Internet]. Brussels, Belgium, European Generic Medicines Association (EGA); 2006 [cited 2013 Sep 26]. Available from: www.egagenerics.com/doc/simoens-report_2006-04.pdf 18. Simoens S. International comparison of generic medicine prices. Curr Med Res Opin. 2007;23(11):2647-54.
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