German drug spend up 6.4% in 2007

Initial estimates of German prescription drug spending in 2007 highlight a 6.4% rise to about 28.0 billion euros ($42.52 billion). Commenting on the estimates the research-based drug industry body, the VFA, said the main influence on the upward surge in costs was "the state itself" which had contributed to the increase with a value-added tax rate of 2.6%. In addition, legislation had widened the range of drug-related services including reimbursable vaccination. The VFA noted that drugmakers had reduced their product prices through 2007 by some 4.6% but this had been partly offset by the VAT rate.

Working on rare disease drugs

Meantime, said the VFA, German drugmakers will produce an increasing number of innovative drugs for the treatment of rare diseases and conditions. VFA director Cornelia Yzer noted that, with 13 marketing approvals for such products, 2007 was a record year. She added that, to 2011, VFA member firms intended to launch no fewer than 40 new drugs in this segment of the market despite the expectation of relatively low prescription rates.