Germany proposes to fix shortages in certain medicines

[February 15, 2023]  By Ludwig Burger

FRANKFURT (Reuters) - Germany's health ministry on Tuesday vowed to fix shortages in medicines for children, antibiotics and cancer drugs, proposing price increases for certain drugs, higher inventory levels and an early warning system.

The proposed law for Europe's largest drugs market, a copy of which was seen by Reuters, was made available to stakeholders for consultation and is due to be put to government ministers and to a parliamentary vote at a later stage.

While countries around the world have reported shortages of antibiotics amid a wave of respiratory infections, the problem in Europe is particularly acute.

With prices for generics regulated, many European drugmakers have said they are reluctant to expand capacity at a time when the war in Ukraine has pushed up energy costs.

Continued price pressure on makers of generic drugs that have lost patent protection has led to an increased reliance of European health systems on drugs and ingredients imported from low-cost suppliers in China or India.

According to the draft law, administered maximum prices for drugs designed for children up to the age of 12 as well as certain antibiotics and cancer drugs, can be increased by 50%.

It also includes provisions that tenders organised by Germany's statutory health insurers for bulk purchase agreements for those cancer drugs and antibiotics are awarded to European manufacturers for at least half of the tender volume.

Pharmaceutical tablets and capsules are arranged on a table in a photo illustration shot September 18, 2013. REUTERS/Srdjan Zivulovic/Illustration

Drugmakers and hospital pharmacies would also have to keep larger stockpiles to buffer any temporary supply shortages.

Germany's association of pharmaceutical companies BAH welcomed the ministry's push in principle but said it amounted only to fixes in selected areas, while the overall focus remained on cheap supplies regardless of delivery security.

"There is a complete lack of a comprehensive review of the tender system under the framework of discount contracts," it said in a statement.

Officials at the health ministry could not be reached for comment.

Over recent months, Germany has run into shortages of fever-lowering liquids for children, antibiotics and the commonly-used breast cancer drug tamoxifen, according to the national drugs regulator.

(Reporting by Ludwig Burger; Editing by Christina Fincher)

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