German Study Finds Most New Drugs Fail to Improve on Standard of Care

Germany’s Institute of Quality and Efficiency in Healthcare (IQWiG) finds there is no evidence of added benefit for more than half of the drugs the institute assessed from 2011-2017.

In Germany, IQWiG is charged with assessing new drugs to determine their added benefit compared to the standard of care on behalf of the Federal Joint Committee (G-BA), the main decision-making body for the country’s national health insurance system. The requirement for all newly approved drugs to undergo a benefit assessment stems from the 2010 Act on the Reform of the Market for Medicinal Products (AMNOG), which went into effect in 2011. The outcome of the benefit assessment is a major factor in the price negotiations that follow between health insurance authorities and drugmakers.

“In general, a new drug with no added benefit should not cost more than standard care,” the authors write.

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