AOK tender pressure for German generic firms

The leading German generics groups - including Stada, Ratiopharm and Winthrop - are reported to have emerged empty-handed from the latest round of bid negotiations with the country's biggest national health insurance federation, The AOK, over drug supply contracts. Generic industry sources say this will affect Ratiopharm sharply, given that it is expected to be sold off shortly by the troubled Adolf Merckle group (Marketletter November 24). The tendering negotiations between AOK and pharmaceutical firms are said to have covered a range of high-selling agents such as cholesterol-lowering simvastatin and ramipril for hypertension.

Neither AOK, which has over 25 million customers, about 36% of Germany's population, nor the drugmakers commented on the reports, the Marketletter's European correspondent writes. A Stada spokesman said that the AOK has not yet reached final decisions on the bidding round. The AOK said that it would be making decisions shortly on the purchase of 44 out of 64 active principles out to tender and would be informing the companies of the result by post as to whether their bids covering the next three years had been successful. Between them, the 64 agents represented sales of 2.3 billion euros ($2.90 billion) in 2007, or almost a quarter of the German generics market.