Effects of Rebate Contract Tenders on the Generic Pharmaceutical Industry in Germany

Effects of Rebate Contract Tenders on the Generic Pharmaceutical Industry in Germany

Since 2003, statutory health insurances (SHI) or their associations can negotiate rebate contracts for pharmaceutical drugs delivered to their detriment with pharmaceutical firms. Especially in the generics sector, the signing of rebate contracts has since then developed to an important tool for SHI’s to lower expenditures.The most recent adaptation of the regulatory framework in 2009 made clear that the tenders for rebate agreements are subject to the rules of procurement law. Furthermore, the cartel ban and the prohibition of abuse of a dominant position as part of competition law are applicable for the relationship between SHI and pharmaceutical firms.For the generic pharmaceutical firms, rebate contracts have led to a structural change in demand, as now no longer primarily doctors, pharmacists and patients choose the drug. By the design of the tender and the choice of contractors, SHI make comparatively few, but far-reaching decisions on the allocation of demand to the manufacturers.Against this background, the study examines the impact of rebate contracts on the generics industry in Germany. The focus of the investigation is the effects on market structure, supplier diversity and competition. Specifically, the causality between the changes in the law since 2009 and possible changes in actual tender practice and the market structure is to be examined. The study will be published in issue no. 104 of the "ZEW Wirtschaftsanalysen" series. For more information see the following link: http://www.nomos-shop.de/trefferliste.aspx?action=reihe&reihe=286&rtoc=125

Project members

Ulrich Laitenberger

Ulrich Laitenberger

Project Coordinator
Research Associate

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Kai Hüschelrath

Kai Hüschelrath

Research Associate

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Client/Allowance
Cooperation partner

Contact

Research Associate
Prof. Ulrich Laitenberger, PhD
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