Germany warned over price curbs on drugs

Berlin

BAYER AG, Roche Holding AG and other drugmakers are warning that a German government proposal to tighten price controls on prescription drugs could end up restricting access to new medicines in Europe's biggest healthcare market.

The proposal "lacks a fair balance between measures to foster innovation and cost-containment", said Dieter Weinand, pharmaceuticals chief at Bayer. "Incremental innovation is not recognised and rewarded adequately."

At the heart of the plan is a 250 million euro (S$380 million) revenue ceiling for medicines in their first year on the market. Once companies reach that threshold, controls would kick in to restrict the price. Currently, drugmakers can charge whatever they want in the first year a medi…