Pharmaceutical Pricing, Reimbursement, and Prescribing News in the First Quarter of 2007

Decision Resources
May 3, 2007
23 Pages - SKU: DECR1492605
License type:
Countries covered: United States, Europe

In the first quarter of 2007, political intervention in drug pricing and reimbursement in the world's major pharmaceutical markets greatly increased. In the United States, for example, a new Democratic majority in Congress is intent on curbing the prices of branded medicines and facilitating the launch of generic drugs. In the United Kingdom, a complete overhaul of the country's pricing and reimbursement system has been proposed. The goal in all major pharmaceutical markets is to cut health care costs, and the pharmaceutical industry is an easy target.

Questions Answered in This Spectrum Report:

  • In January 2007, U.S. lawmakers proposed a series of bills to improve U.S. consumers' access to lowpriced generic drugs, including biogenerics. Which bills have been proposed, how much savings are they purported to offer, and what are their chances of being made into law?
  • According to the Centers for Medicare and Medicaid Services, the Medicare Part D prescription drug benefit is saving benefi ciaries an average of $1,200 per year. On January 12, 2007, in a further attempt to lower drug prices, the House of Representatives passed the Medicare Prescription Drug Price Negotiation Act of 2007, which would empower the Department of Health and Human Services to negotiate Medicare Part D drug prices. What is the Congressional Budget Office's argument against this proposal?
  • In February 2007, the United Kingdom's Offi ce of Fair Trading (OFT) published a highly critical review of the Pharmaceutical Price Regulation Scheme, which controls the level of profi t companies may make on sales of branded prescription drugs to the National Health Service. What were the OFT's criticisms, and what two options did the agency propose to better control prescription drug prices?
  • The announcement, in March 2007, by Japan's Ministry of Health, Labor, and Welfare that it is considering overhauling the national pricing and reimbursement system has galvanized the international pharmaceutical industry, which has long been critical of the system. What reforms is the Federation of Pharmaceutical Manufacturers' Associations of Japan planning to propose?
Please note, the PDF e-mail from publisher version of this report is for a global site license.



Additional Information

Scope:
  • First quarter news in 2007: major events in the pharmaceutical pricing, reimbursement, and prescribing environment in the United States, Europe (France, Germany, Italy, Spain, and the United Kingdom), and Japan.
  • Cost-containment programs: legislation that has been proposed in the United States and elsewhere to reduce drug expenditures and make medication more affordable to patients.
  • Outlook: our assessment of the implications of these events for the pharmaceutical industry in the major markets under study.
Mentioned in This Spectrum Report:

Organizations
  • Agence Française de Sécurité Sanitaire des Produits de Santé (AFSSAPS; French Agency for the Safety of Health Products)
  • Agence Technique de l’Information sur l’Hospitalisation
  • Agenzia Italiana del Farmaco (AIFA; Italian Pharmaceutical Agency)
  • Biotechnology Industry Organization (BIO)
  • Bundesfachverband der Arzneimittelhersteller (BAH; Federal Association of Pharmaceutical Manufacturers)
  • Bundesverband der Betriebskrankenkassen (BKK; Federal Association of Occupational Health Insurance Funds)
  • Bundesvereinigung Deutscher Apothekerverbände (ABDA; Federal Union of German Pharmacists’ Associations)
  • Centers for Medicare and Medicaid Services (CMS)
  • Comité Economique des Produits de Santé
  • Congressional Budget Offi ce (CBO)
  • European Federation of Pharmaceutical Industries and Associations (EFPIA)
  • European Network for Health Technology Assessment (HTA)
  • Farmaindustria
  • Federación Empresarial de Farmaceúticos Españoles (FEFE; Business Federation of Spanish Pharmacists)
  • Federal Trade Commission
  • Federation of Pharmaceutical Manufacturers’ Associations of Japan (FPMAJ)
  • Gemeinsamer Bundesausschuß der Ärzte, Zahnärzte, Krankenhäuser und Krankenkassen (GBA; Joint Federal Committee of Physicians, Dentists, Hospitals, and Health Insurance Funds)
  • Gesetzliche Krankenversicherung (GKV; statutory health insurance)
  • Haute Autorité de Santé (HAS; National Health Authority)
  • House Committee on Oversight and Government Reform
  • House Energy and Commerce Committee’s Subcommittee on Health
  • Institut National du Cancer (INCa; National Cancer Institute)
  • Institut für Qualität und Wirtschaftlichkeit im Gesundheitswesen (IQWiG; Institute for Quality and Economy in the Health Care System)
  • Japan Generic Pharmaceutical Manufacturers Association (JGPMA)
  • Japan Pharmaceutical Manufacturers Association (JPMA)
  • Kassenärztliche Bundesvereinigung (KBV; Federal Union of Health Insurance Fund Physicians)
  • Medicaid
  • Medicare
  • National Health Service (NHS)
  • National Institute for Health and Clinical Excellence (NICE)
  • Office of Fair Trading (OFT)
  • Pharmaceutical Care Management Association
  • Pharmaceutical Price Regulation Scheme (PPRS)
  • Pharmaceutical Research and Manufacturers of America (PhRMA)
  • Servizio Sanitario Nazionale (SSN; National Health Service)
  • Sistema Nacional de Salud (SNS; National Health System)
Companies
  • Abbott
  • Amgen
  • Apotex
  • AstraZeneca
  • Bristol-Myers Squibb
  • Express Scripts
  • Genentech
  • GlaxoSmithKline
  • IMS Health
  • Roche
  • Sanofi -Aventis
  • Schering-Plough
  • Servier
  • Takeda
  • UCB

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