Germany’s stance on pricing threatens drug firm profits

By Ludwig Burger and Thorsten Severin FRANKFURT/BERLIN (Reuters) – Germany's plan to publish price discounts agreed with drugmakers poses a risk to profits in the industry, which fears the information could be used to drive down prices elsewhere. Germany, Europe's biggest market for medicines, is already one of the toughest for pharmaceutical companies, in part because statutory health insurers club together to increase their bargaining power in price negotiations with the industry. Discounts vary widely, but can be around 20 percent off drugmakers' list prices. The aim of the new law, which could come into force as soon as April, is to stop wholesalers and pharmacies from basing their margins on list prices rather than the discounted prices.