PMID- 32451745 OWN - NLM STAT- MEDLINE DCOM- 20210615 LR - 20220608 IS - 1618-7601 (Electronic) IS - 1618-7598 (Print) IS - 1618-7598 (Linking) VI - 21 IP - 7 DP - 2020 Sep TI - Predictors of negotiated prices for new drugs in Germany. PG - 1049-1057 LID - 10.1007/s10198-020-01201-z [doi] AB - INTRODUCTION: In Germany, all new, innovative medicines are subject to an early benefit assessment by the German Federal Joint Committee with subsequent price negotiation and optional arbitration. The purpose of this study was to identify drivers of negotiated (including arbitrated) prices of new, non-orphan innovative medicines in Germany. METHODS: The analysis considered all non-orphan drugs that underwent a benefit appraisal between January 2011 and June 2016, and displayed a reimbursement price in the German Drug Directory (Lauer-Taxe((R))) in November 2017. Negotiated annual treatment costs were analyzed with respect to 11 explanatory variables in regression models. RESULTS: The total sample included 106 non-orphan drugs. The analysis showed a significant and positive association of log-transformed negotiated annual treatment cost of new medicines with log-transformed annual treatment cost of its comparator(s), extent of added benefit, and log-transformed size of the target population. Analyzing the effects of specific endpoints instead of the overall added benefit revealed that the single endpoint with the largest impact on price is adverse events (AEs). Surprisingly, an increase in AEs significantly increased the price. Various subgroup and sensitivity analyses demonstrated the robustness of the results. The adjusted R squared for all models was above 80%. CONCLUSIONS: The analysis was able to confirm that variables whose consideration is mandated by law are, in fact, the key drivers of negotiated prices. Somewhat puzzling, the analysis also found an increase in AEs to move prices significantly upward. FAU - Gandjour, Afschin AU - Gandjour A AD - Frankfurt School of Finance and Management, Frankfurt am Main, Germany. FAU - Schussler, Sofia AU - Schussler S AD - Frankfurt School of Finance and Management, Frankfurt am Main, Germany. FAU - Hammerschmidt, Thomas AU - Hammerschmidt T AD - Faculty of Applied Health and Social Sciences, Technical University of Applied Sciences Rosenheim, Rosenheim, Germany. FAU - Dintsios, Charalabos-Markos AU - Dintsios CM AUID- ORCID: 0000-0003-3469-092X AD - Institute for Health Services Research and Health Economics, Centre for Health and Society, Faculty of Medicine, Heinrich-Heine University Dusseldorf, Gebaude 12.49, Moorenstrasse 5, 40225, Dusseldorf, Germany. dintsios@hhu.de. LA - eng PT - Journal Article DEP - 20200525 PL - Germany TA - Eur J Health Econ JT - The European journal of health economics : HEPAC : health economics in prevention and care JID - 101134867 SB - IM MH - Costs and Cost Analysis/*statistics & numerical data MH - Drug Costs/*statistics & numerical data MH - Germany MH - Humans MH - *Negotiating MH - Quality of Life PMC - PMC7423852 OTO - NOTNLM OT - AMNOG OT - Germany OT - Innovative medicines OT - Negotiation OT - Prediction OT - Pricing COIS- Next to his academic affiliation, CMD is employed by Bayer Vital GmbH, Leverkusen, Germany. TH has received fees for consulting and lectures from 4SC, Acorda, Amgen, AstraZeneca, GlaxoSmithKline, MSD, Novartis, Pfizer, ViiV Healthcare, the vfa (German Association of Research-Based Pharmaceutical Manufacturers) and the Bavarian State Chamber of Pharmacists as well as the consulting companies IQVIA, Market Access Transformation, and PRMA Consulting. All other authors declare that they have no competing interests. EDAT- 2020/05/27 06:00 MHDA- 2021/06/16 06:00 PMCR- 2020/05/25 CRDT- 2020/05/27 06:00 PHST- 2019/07/19 00:00 [received] PHST- 2020/05/13 00:00 [accepted] PHST- 2020/05/27 06:00 [pubmed] PHST- 2021/06/16 06:00 [medline] PHST- 2020/05/27 06:00 [entrez] PHST- 2020/05/25 00:00 [pmc-release] AID - 10.1007/s10198-020-01201-z [pii] AID - 1201 [pii] AID - 10.1007/s10198-020-01201-z [doi] PST - ppublish SO - Eur J Health Econ. 2020 Sep;21(7):1049-1057. doi: 10.1007/s10198-020-01201-z. Epub 2020 May 25.