The Danish government presents a plan to introduce an external reference pricing system

Inspired by several other European countries, the Danish Government plans to introduce an external reference pricing system (ERP) by law in order to lower the list prices on reimbursement and hospital only medicines.

The new legislation will regulate the suppliers of medicinal products who are not already covered by or constituents to the voluntary pricing arrangements that have been concluded between the Ministry of Health, Danish Regions and the Danish Association of the Pharmaceutical Industry ("LIF").

According to the Government, the companies will henceforth have to report the prices of their products in nine selected countries. The list price will then be based on an average of the companies' prices in the reference countries.

It is expected that a bill regarding the new pricing system will be introduced in autumn 2019, so it can come into effect in 2020.
Read more about the plan here (in Danish)

A prior version of this post was originally published by the same authors in Practical Law – Life Sciences, September 2018 Issue (Thomson Reuters).

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