German generics firms and pharmacies clash

The German generics sector organization Pro Generika reports that the combined effect of legislation which was designed to ensure cost-effective drug prescribing and distribution, as well as to increase competition in the public-sector health funds (Krankenkassen), has sharply affected generics companies' revenue. Among the measures included in the government program was compulsory discounting to the Krankenkassen. However, the national pharmacy federation, the ABDA, argues that the discounting scheme has improved the financial position of the funds.