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After Germany revamped its approach to purchasing medicines a decade ago, the prices negotiated by the government for cancer treatments were more closely aligned with clinical benefits, a new study finds. Moreover, the effort led to a 25% drop in prices one year after product launches, prompting the researchers to suggest U.S. policymakers should consider Germany as a cost-saving model.

In reaching their conclusion, the researchers examined data for 57 cancer treatments that were launched in Germany from 2002 to 2017. Specifically, they compared incremental health benefits and costs of these treatments before and after the country enacted a law in 2011 which allowed drug makers to freely set prices for newly authorized medicines for one year before negotiations take place.

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