New price agreements ensure reduced prices and price ceiling on medicine
On 19 March 2019, The Ministry of Health, the Danish Regions and The Danish Association of the Pharmaceutical Industry (Lif) entered into two price agreements resulting in reduced prices on hospital medicine and price ceiling on prescription-only medicine eligible for reimbursement.
With regards to the price agreement on hospital medicine, the parties have agreed on a 12.5 pct. reduction on the list prices on hospital medicine during the coming four years. The agreement ensures that list prices on new hospital medicine introduced on Danish hospitals during the four-year period do not exceed the average prices in Sweden, Norway, Finland, Great Britain, the Netherlands, Belgium, Germany, Ireland and Austria. The new price agreement is based on a preceding agreement on the same subject and together, the two agreements ensure a 15 pct. reduction in list prices on hospital medicine during the four-year period.
With regards to the agreement on prescription-only medicine eligible for reimbursement, the parties have agreed to freeze the maximum prices for such medicine in the period from 1 April 2019 to 31 March 2022. The purpose of the price ceiling agreement is, inter alia, to ensure that chronically ill patients can afford to buy their everyday medicine and to ensure that Danish prices on prescription-only medicine eligible for reimbursement correspond to prices in other countries.
Click here to more about the new price agreements (in Danish)
A prior version of this post was originally published by the same authors in Practical Law – Life Sciences, March 2019 Issue (Thomson Reuters).