German Minister clashes with pharma

German Economics Minister Werner Muller's proposed alternative to HealthMinister Ulla Schmidt's drug costs savings package has been attacked by the drug industry group, the BPI. He had said that Ms Schmidt's planned 4% drug price cut should be replaced by a comparable discount for the health funds (Marketletters passim) but, after talks between the two sides, the BPI said the impact of either proposal would be negative.

Mr Muller is now expected to withdraw from this hotspot and leave it to the parliamentary committee of his party, the Social Democrats who, with the Greens, generally back the Schmidt package, which will relieve the funds of some 2 billion Deutschemarks ($929.2 million) of spending. Social Democrat parliamentary panel chairman Peter Struck has defended making drugmakers cut prices and higher discounts for pharmacies.