Novartis subsids and STADA launch phase of lower German generic drug prices

A new phase of price cutting has been launched by Sandoz and its sister company Hexal on the German generic drugs market. Both are subsidiaries of Swiss pharmaceutical major Novartis and have cut prices of a large proportion of their product range from June 1. Hexal has said that German health funds will save some 60.0 million euros ($76.5 million) from these reductions in a full year.

The lower prices will apply, for example, to Hexal's proton pump inhibitor omeprazole-E, the heart and circulatory system drug amlodipine and simvastatin, its cholesterol-lowerer. It is estimated that Sandoz' reductions will generate a further 7.0 million euros in annual savings. Some 40% of the Hexal range will be reduced an average of 22% and, according to the company, will constitute the lowest segment of the generics price structure.

As Sandoz and Hexal made their announcements on May 24, it was expected that their competitors, STADA Arzneimittel and Ratiopharm, would follow suit in pulling back their prices, with Ratiopharm revealing sweeping price cuts in the area of drug products covered by the government's fixed-level price support regime.