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Methods and issues in measuring drug prices to improve pricing policies

Methods and issues in measuring drug prices to improve pricing policies. The wider problem of medicine prices. Medicines have variable and generally high prices, and are unaffordable for large sectors of the global population and a major burden on government budgets

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Methods and issues in measuring drug prices to improve pricing policies

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  1. Methods and issues in measuring drug prices to improve pricing policies

  2. The wider problem of medicine prices • Medicines have variable and generally high prices, and are unaffordable for large sectors of the global population and a major burden on government budgets • Some evidence that prices for some key medicines are unrelated to countries’ income level • Medicine prices are rising more rapidly than other prices • Trade regulations can severely affect the price and availability of medicines • The prices of medicines are well above their production costs so there is great scope for reductions • For medicines to be affordable, appropriate and well-informed pricing policies are needed but many low income countries do not have pricing policies

  3. Why measure the price of medicines? • Little is known about the prices people pay for medicines and how these prices are set – from the manufacturers’ selling price to the patient price • Reliable information is needed in order that more favourable purchasing agreements can be negotiated, domestic distribution better managed and pricing policies monitored • Price transparency empowers actors concerned with health and medicines policy • Sound data - sound policies and more affordable medicines

  4. Background to WHO/HAI project on medicine prices • Absence of a standard methodology has been a stumbling block in reliable monitoring and price comparison within countries • Practical difficulty of obtaining reliable, up-to-date information on drug prices, particularly in low income countries • Methodological difficulty of making international price comparisons • WHO-Public Interest NGO Roundtable an opportunity to launch an initiative on medicine prices

  5. Purpose • To promote analysis of medicines affordability, price differences within countries and what makes up the retail price in order to lower prices and improve access to essential medicines • To develop a simple and reliable methodology for collecting and analysing retail medicine prices across healthcare sectors both within and between countries (primarily low- and middle-income). • To make data freely accessible on a public web site so international price comparisons are possible

  6. Designed to inform on • What prices people pay for key medicines? • How affordable are medicines for ordinary people? • Do the prices & availability of the same medicines vary in different sectors? • Do prices of the same medicine vary in different parts of the country? • What is the difference in prices of innovator brands and generically equivalent medicines? • How do procurement prices compare with international reference prices and with local retail prices? • What taxes and duties are levied on medicines and what is the level of various mark-ups which contribute to their retail prices?

  7. Programme • Medicine prices: a new approach to measurement Kirsten Myhr • The Rajasthan, India experience Anita Kotwani • Ensuring data quality in the Medicines Prices project Jeanne Madden Discussion: Collecting retail prices & assessing affordability then coffee • Identifying, finding and analyzing the component costs of essential medicines Libby Levison • The influence of Value Added Tax (VAT) elimination on drug prices Saliya Karymbaeva • Comparing medicine prices among countries Jeanne Madden • HAI/WHO medicine prices website Marg Ewen Discussion: Future of price measurement methods and resources

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