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Germany to Cap Drug Prices

The German government is considering capping the price that drug companies can charge for the latest medicines, a move that would curtail a lucrative one-year amnesty for the country’s otherwise strict price controls.

The current system allows insurers to pay full price for the newest drugs on the market for up to a year from the time they win regulatory approval. The reform proposes changes to the Pharmaceutical Market Restructuring Act, enacted in 2011. It would allow companies to charge full prices for drugs but would require insurers to negotiate discounts once a drug surpasses sales of €250 million.

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