Pharmaceutical Rewards Decision: Granting Incentives for Prescription Drugs? - Prescription drug premium upheld by BGH's decision
In a highly anticipated ruling set for Thursday, the German Federal Court of Justice (BGH) is poised to decide whether mail-order pharmacies based in other EU countries can offer bonuses on prescription medications to customers in Germany, a practice that has been the subject of controversy for years.
The question at hand is whether the drug price regulation in Germany applies to mail-order pharmacies in other EU countries, a matter that has been debated extensively. It must be demonstrated that the drug supply in Germany would be at risk without this regulation, and not that it could also be secured via mail-order pharmacies.
The case involves a mail-order pharmacy based in the Netherlands, and the BGH must clarify if the statutory drug price regulation in Germany applies to such pharmacies. The ruling concerns a practice where the pharmacy allegedly offered a three-euro bonus per medication, with a maximum of nine euros per prescription, and also provided bonuses to customers who participated in a medication check via form or telephone.
The Bavarian Association of Pharmacists views this practice as a violation of competition law and the drug price regulation. The lower courts' ruling was in favour of the association, but the BGH may decide differently, as suggested by the oral hearing in May.
The case law of the European Court of Justice (ECJ) has been referenced as a key factor in the ruling process. According to the ECJ, "hard facts" must be demonstrated to justify the price regulation. However, no specific recent decision by the BGH concerning this issue was found in the search results.
In a related but distinct issue, the German Federal Tax Court recently ruled on the tax consequences related to parallel imports of pharmaceuticals within EU member states. This ruling emphasized competition dynamics between parallel importers and national distributors but did not specifically address promotional bonuses by pharmacies.
German pharmacies are legally mandated to source some pharmaceutical products from parallel importers if they are significantly cheaper under German Social Code. This closely governs how medications are distributed and priced in Germany, with an EU-wide principle of free movement of goods and competition playing a role.
While EU competition law and health regulation frameworks do allow mail-order pharmacies to operate across borders and offer certain promotions, these must comply with pricing controls, rebate restrictions, and anti-kickback statutes. German courts have typically balanced these principles with consumer protection and fair competition rules.
As the BGH prepares to deliver its ruling, the controversy revolves around whether the price regulation in Germany violates the free movement of goods within the EU. The decision is expected to set a significant precedent for mail-order pharmacies operating within the EU.
For those seeking further detailed jurisprudence or rulings on this specific topic, consulting German legal databases or specialized pharmaceutical law resources might be necessary.
The German Federal Court of Justice (BGH) is set to rule on whether mail-order pharmacies based in other EU countries abide by Germany's drug price regulation, a controversy that has persisted for years. This ruling could potentially impact the vocational training programs of pharmacies, particularly those in Germany, as it might affect their financial structure due to changes in revenue streams. Additionally, the practice of offering bonuses on prescriptions by these pharmacies could be interpreted as a form of health-and-wellness promotion, implicitly aligning it with science and medical-conditions, central topics of research in vocational training programs.
