German Pharmacies Demand Action on Foreign Discount Drug Sales
Economy / Finance

German Pharmacies Demand Action on Foreign Discount Drug Sales

The president of the German Association of Pharmacists (ABDA), Thomas Preis, has called on Federal Health Minister Nina Warken to take action against discounts offered on prescription medications by foreign online pharmacies.

Speaking to Redaktionsnetzwerk Deutschland, Preis described the practice as a clear violation of existing laws, urging state intervention to penalize and halt the behavior. He stated that companies failing to adhere to regulations should be excluded from providing services to Germany’s statutory health insurance system, emphasizing a need to safeguard domestic pharmaceutical provision.

The call follows a recent Federal Court of Justice ruling that has allowed some large, foreign-based online pharmacies to resume offering discounts – a ruling pertaining to previous legislation. Currently, the German Social Code prohibits rebates or bonuses on the redemption of prescription drugs. Preis warned that circumventing price controls through bonuses or discounts could lead to a damaging price war, jeopardizing supply and potentially impacting patients. He cited the risk of inflated prices during supply shortages as a key concern, asserting that price stability is crucial to ensuring consistent access to medication.

Preis also advocated for increased remuneration for pharmacies, noting that 4,500 pharmacies – representing a 21 percent decline – have closed since 2008. He described this as a concerning trend requiring immediate attention, highlighting the growing number of neighborhoods and cities without access to a local pharmacy. He further explained that operating costs, including energy and labor, have risen significantly over the past thirteen years, while pharmacy remuneration has remained largely stagnant, pushing an increasing number of establishments to the point of financial unsustainability.