German drug discounts facing legal hurdles

Germany's largest state health insurer Allgemeine Ortskrankenkasse (AOK) has announced the closing of a second round of drug supply contracts for the next two years, although the news was tempered by problems with drugmakers, who have challenged the legality of the procedure. AOK's Baden-Wurttenburg unit said it had secured discounts with 23 suppliers for 17 active ingredients and expects to save 130.0 million euros ($190.0 million) during the contract period.

66 out of 83 drug discounts blocked

The German generic drugmakers' association, Pro Generika, has opposed the discount programs, which are mandated by the German government, on the grounds that they threaten the viability of the sector (Marketletter October 1). A series of legal challenges has meant that 66 out of the initially-expected 83 active ingredients put up for tender by the AOK are the subject of various legal disputes.