Medicine prices, availability, Medicine prices, availability, affordability and component affordability and component prices prices Margaret Ewen Margaret Ewen Health Action International, The Netherlands Coordinator WHO/HAI Project on Medicine Prices & Availability
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Medicine prices, availability, affordability and component prices
Medicine prices, availability, affordability and component prices. Margaret Ewen Health Action International , The Netherlands Coordinator WHO/HAI Project on Medicine Prices & Availability. Wider problems of medicine prices. - PowerPoint PPT Presentation
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Medicine prices, availability, Medicine prices, availability,
affordability and component pricesaffordability and component prices
Margaret EwenMargaret EwenHealth Action International, The Netherlands
Coordinator WHO/HAI Project on Medicine Prices & Availability
Wider problems of medicine pricesWider problems of medicine prices
Medicines have variable and often high prices; unaffordable Medicines have variable and often high prices; unaffordable and unavailable and unavailable for large sectors of the global population; for large sectors of the global population; major burden on government budgetsmajor burden on government budgets
Burden falls directly on most patients in developing countries Burden falls directly on most patients in developing countries –until now little known about patient prices and how they are –until now little known about patient prices and how they are setset
Trade agreements can severely affect the price and Trade agreements can severely affect the price and availability of medicinesavailability of medicines
For medicines to be more affordable, appropriate and well-For medicines to be more affordable, appropriate and well-informed pricing policies are needed; many countries have informed pricing policies are needed; many countries have no such policiesno such policies
Prices of medicines are well above production costs so great Prices of medicines are well above production costs so great scope for reductionsscope for reductions
WHO/HAI Project on Medicine Prices & WHO/HAI Project on Medicine Prices & AvailabilityAvailability
improve the availability of improve the availability of affordable essential medicinesaffordable essential medicines
Develop a reliable methodology for collecting and Develop a reliable methodology for collecting and analysing price and availability data across analysing price and availability data across healthcare sectors in a countryhealthcare sectors in a country
Price transparency; survey data on a freely Price transparency; survey data on a freely accessible web site allowing international accessible web site allowing international comparisons comparisons
Advocate for appropriate pricing policies and Advocate for appropriate pricing policies and monitor their impactmonitor their impact
Launched at the World Health Assembly in 2003
Measures:• patient prices• public sector procurement
prices• availability• treatment affordability• price components in the supply chain
About 50 surveys to date in all regions
Monitoring tool in development
Survey tool
Data & information on HAI website: www.haiweb.org/medicineprices
Standardised MethodologyStandardised Methodology
Systematic sampling: min 6 regions, 5 pharmacies Systematic sampling: min 6 regions, 5 pharmacies per sector per regionper sector per region
Public sector facilities, private retail pharmacies and Public sector facilities, private retail pharmacies and ‘other’ sectors (e.g. dispensing doctors)‘other’ sectors (e.g. dispensing doctors)
Prices of 30 pre-selected commonly used medicines Prices of 30 pre-selected commonly used medicines – 14 global + 16 regional– 14 global + 16 regional
Predetermined dose form & strength, & Predetermined dose form & strength, & recommended pack sizerecommended pack size
Supplementary medicines highly encouraged, Supplementary medicines highly encouraged, adapted to local needsadapted to local needs
Prices of originator brand and lowest price generic Prices of originator brand and lowest price generic are collected, referenced to international are collected, referenced to international benchmark (MSH)benchmark (MSH)
AvailabilityAvailability of medicine on day of survey of medicine on day of survey Affordability - number of days wages for lowest paid Affordability - number of days wages for lowest paid
unskilled government worker to purchase treatmentunskilled government worker to purchase treatment All components of price from manufacturer to All components of price from manufacturer to
Median % availability of generics Median % availability of generics in private pharmacies per regionin private pharmacies per region
100 100
80
60
80
60
0
20
40
60
80
100
120
Bishkek Chui Naryn Jalalabad Osh Batken
Lowest price generic equivalent
Examples of % availability of Examples of % availability of generics in private pharmacies generics in private pharmacies
across regionsacross regions
0
20
40
60
80
100
Bishkek Chui Naryn Jalalabad Osh Batken
Co-trimoxazole
Glibenclamide
Hydrochlorothiazide
Median price ratioMedian price ratio
- - MPR = ratio of median unit price across facilities MPR = ratio of median unit price across facilities
surveyed by international reference pricesurveyed by international reference price- MPR only calculated if medicine found in at MPR only calculated if medicine found in at
least 4 facilitiesleast 4 facilities
International reference priceInternational reference price
- external standard for evaluation of local pricesexternal standard for evaluation of local prices- From: Management Sciences for Health From: Management Sciences for Health
‘International Drug Price Indicator Guide'‘International Drug Price Indicator Guide'- web-based, prices relatively stable, updated web-based, prices relatively stable, updated
annuallyannually
Government procurement Government procurement pricesprices
Number of medicines in the
2 tenders (n=28)
Median MPR
25%ile MPR
75%ile MPR
Originator brand 1 59.47
Lowest price generic equivalent
17 1.29 1.03 2.04
Examples of high govt. procurement Examples of high govt. procurement pricesprices
Medicine (generics) Median Price Ratio
Amitriptyline 25mg tab 3.26
Diclofenac 25mg tab 2.71
Hydrochlorothiazide 25mg tab 4.88
Metronidazole 250mg tab 2.04
Carbamazepine 200mg tab 2.06
Patient prices in private retail Patient prices in private retail pharmaciespharmacies
Number of medicines found in 4+ pharm.
MedianMPR
25%ile 75%ile
Originator brand 7 5.42 5.08 29.95
Lowest priced generic equivalent
23 2.56 1.63 4.29
Paired analysis (5 meds) : Originator Brand Med MPR 5.42Lowest Priced Generic Med MPR 1.52
Originator Brands over 3x the price of cheapest generic equivalents
Examples of patient prices in private Examples of patient prices in private retail pharmaciesretail pharmacies
0 5 10 15 20 25 30 35 40 45 50
Co-trimoxazole suspension
Fluconazole
Mebendazole
Metronidazole
Verapamil
Hydrochlorothiazide
Ciprofloxacin
Amoxicillin
Amitriptyline
median price ratio
Originator brand
Lowest priced generic
99
Patient prices, private sector, by Patient prices, private sector, by regionregion
4,9 4,51,8
5.1 2,7 2,0
52.4
5.72,5
91,7
9,9
2,9
11.6
2.9 4,1 2,6
0
10
20
30
40
50
60
70
80
90
100
Bishkek Chui Naryn Jalalabad Osh Batken
Originator brand
Most sold genericequivalent
Lowest price generic equivalent
Patient price, captopril 25mg tab, Patient price, captopril 25mg tab, private sector by regionprivate sector by region
Affordability of treatments for lowest paid unskilled Affordability of treatments for lowest paid unskilled gov’t worker purchasing medicines in the private gov’t worker purchasing medicines in the private
sectorsectorDaily wage = 20 som Days’ wagesDays’ wages
Hypertension:Hydrochlorothiazide 25 mg x 1 for 30 days
Originator brand
Lowest price generic 1.91.9
Hypertension:Captopril 25mg x 2 for
30days
Originator brand 17.617.6
Lowest price generic 4.54.5
Diabetes:Glibenclamide 5mgx 2 for 30 days
Originator brand
Lowest price generic 2.12.1
Asthma:Salbutamol inhaher
Originator brand 7.37.3
Lowest price generic 4.54.5
Pneumonia:Amoxicillin 250 mg x 3 for 7 days
Originator brand
Lowest price generic 2.62.6
Ulcer:Ranitidine 150mg x 1 for 30 days
Originator brand
Lowest price generic 5.15.1
Ulcer:Omeprazole 20 mg x 2
for 30 days
Originator brand
Lowest price generic 11.511.5
AAffordability of ffordability of lowest priced generic lowest priced generic amoxicillin to treat amoxicillin to treat respiratory infectionrespiratory infection, ,
Percentage contribution of components to Percentage contribution of components to final patient price, generic atenolol 50mg final patient price, generic atenolol 50mg
Percentage contribution of components to final patient Percentage contribution of components to final patient price, originator brand captopril 25mg tabs, importedprice, originator brand captopril 25mg tabs, imported
Major FindingsMajor Findings Procurement prices not freely accessible on a Procurement prices not freely accessible on a
website, overall prices were generally reasonable website, overall prices were generally reasonable although they were high for some medicinesalthough they were high for some medicines
Overall patient prices in the private sector were Overall patient prices in the private sector were reasonable for lowest priced generics compared to reasonable for lowest priced generics compared to international reference prices but some individual international reference prices but some individual prices were very highprices were very high
Originator brands not common: 3-4x more Originator brands not common: 3-4x more expensive than lowest priced genericsexpensive than lowest priced generics
Availability of generics in private sector reasonableAvailability of generics in private sector reasonable Medicines are not affordable (even when cheapest Medicines are not affordable (even when cheapest
generics purchased)generics purchased) Manufacturer’s selling price was major component Manufacturer’s selling price was major component
cost; sales tax and import tax apply to medicines cost; sales tax and import tax apply to medicines
Recommendations in the reportRecommendations in the report
Investigation needed into causes of high pricesInvestigation needed into causes of high prices Extended study needed on regional variations in prices and Extended study needed on regional variations in prices and
availabilityavailability In-depth component study needed with view to regulating In-depth component study needed with view to regulating
mark-upsmark-ups Abolish taxes on essential medicinesAbolish taxes on essential medicines Pro-generics policies and programmes including education for Pro-generics policies and programmes including education for
physicians, pharamcists and the public about economic physicians, pharamcists and the public about economic benefits of genericsbenefits of generics
Regularly monitor prices, availability and affordability and Regularly monitor prices, availability and affordability and publish results (especially to patients)publish results (especially to patients)
Establish public outlets with lower prices in rural and remote Establish public outlets with lower prices in rural and remote regionsregions
Centralise public purchasing (including Health Insurance Centralise public purchasing (including Health Insurance Fund)Fund)