The 5% · Netherlands · Brand drugs

Why Netherlands brand drugs are cheaper

It’s cheaper because Netherlands sets one price for the drug. Every hospital and pharmacy pays that (or a cap under it). In the US, each insurer and PBM bargains a rebate off a high list, and the sticker stays high.

Preference policy + a cap

How it works

The authority can cap prices. Insurers then run preference policies: they designate a preferred generic or biosimilar and will not pay extra for the originator without a medical reason. Brands land at Dutch prices, not US list.

Why it holds

This is the cheapest brand tab on the board. RAND: US 5.89× Dutch brands — the Netherlands is about 17¢. It works because the preferred product gets the volume. Manufacturers still sell in the Netherlands. They do not get a US list as a consolation prize.

The invoices

SKUUnited StatesNetherlands
Brand originators on the US dollarsourced$1.0017¢
All drugs on the US dollarsourced$1.0030¢
Specialty year at the brand indexmodeled$150,000~$25,000

See RAND drugs. 30-day list prices: CMS 2023, Inflation Reduction Act round 1.

Twenty brands — US sticker vs Netherlands

Ranked by the US number. 30-day list is CMS 2023 (Inflation Reduction Act round 1). Infusion doses are our hospital commercial bill. Netherlands column is that US sticker × this country’s RAND brand index. Gross list, not rebates. Even after a US rebate haircut, RAND says brands stay more than 3×.

DrugUnited StatesNetherlandsOn the US $
Keytruda (pembrolizumab)hospital dosemodeled$16,800$2,85217¢
Opdivo (nivolumab)hospital dosemodeled$15,000$2,54617¢
Alteplase (tPA) stroke dosehospital kitmodeled$15,000$2,54617¢
Imbruvica (ibrutinib)30-day listsourced$14,934$2,53517¢
Stelara (ustekinumab)30-day listsourced$13,836$2,34817¢
Herceptin-class (trastuzumab)hospital dosemodeled$9,200$1,56217¢
Neulasta-class (pegfilgrastim)hospital dosemodeled$8,900$1,51117¢
Avastin-class (bevacizumab)hospital dosemodeled$8,100$1,37517¢
Enbrel (etanercept)30-day listsourced$7,106$1,20617¢
Rituximab biosimilarhospital dosemodeled$6,800$1,15417¢
Remdesivir coursehospital coursemodeled$4,200$71317¢
Humira-class (adalimumab) clinicclinic syringemodeled$2,400$40717¢
Ozempic (semaglutide)30-day listmodeled$969$16417¢
Entresto (sacubitril/valsartan)30-day listsourced$628$10717¢
Jardiance (empagliflozin)30-day listsourced$573$9717¢
Farxiga (dapagliflozin)30-day listsourced$556$9417¢
Januvia (sitagliptin)30-day listsourced$527$8917¢
Eliquis (apixaban)30-day listsourced$521$8817¢
Xarelto (rivaroxaban)30-day listsourced$517$8817¢
NovoLog / Fiasp (insulin)30-day listsourced$495$8417¢

Also: Why Netherlands hospital prices · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Drug voices · Back to The 5%