In collaboration with
World Health Organization

 

In May 2008 Health Action International (HAI) and the World Health Organization (Department of Medicine Policy and Standards) published the 2nd edition of a manual to collect and analyse medicine prices (patient prices and government procurement prices) across sectors and regions in a country, as well as medicine availability, treatment affordability and all price components in the supply chain from manufacturer to patient (taxes, mark-ups etc.).

Governments, civil society groups and others concerned about the prices of medicines are encouraged to undertake a survey using the methodology outlined in the manual. Reliable data is the first step to exploring policy options and taking action to reduce prices and improve the availability and affordability of essential medicines. The results of over 50 surveys are currently available on the database, along with survey reports and other information.

Latest Surveys, Reports and Advocacy
A one day snapshot of the price for a course of ciprofloxacin 500mg tabs

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On 30 November 2009 individuals from HAI’s extended network collected the price a patient would have to pay (if they paid the full price) for ciprofloxacin 500mg tablets/capsules in their nearest private retail pharmacy. Ciprofloxacin is a broad spectrum antibacterial used to treat various common infections.

The map above shows prices for a 7 day treatment course (14 tablets) in US$ for the originator brand product (manufactured by Bayer) and the lowest priced generic equivalent in the pharmacy. The larger the 'bubble', the higher the price. If you click on the ‘bubble’, a text box will give the location and price for both product types. 

These prices should not be considered representative of the situation in a given country, since great price variation exists within some countries. However, they are indicative of what patients would have to pay, if paying the full retail price, in those pharmacies on that day.

As can be seen on the map, prices vary considerably across countries and between product types. For example, a course of the originator brand product in the private sector was highest in Colombia at more than 200 times the price in 5 Asian countries where the price of generics was lowest - a difference of almost 20,000%.

The use of low priced generics is a significant step towards improving access to treatment. Generic ciprofloxacin is mostly available at a much lower price than the originator brand product, and in many cases, there is ample room to reduce the generic price further, making treatment more affordable.

Governments need to examine access to affordable essential medicines in their country and give it the priority it deserves. The first step is understanding the medicine price, availability and affordability situation, for example through undertaking a medicine price and availability survey (click on ‘Undertaking a survey’ above), then identifying the causes of high prices and poor availability, developing and implementing policies and strategies, and monitoring their impact to ensure patients benefit from lower prices and improved availability. Further insight is provided in the manual and other materials available on this website.

Click to access the following:


Panorama d’un jour du prix d’une cure de ciprofloxacine en comprimés 500mg

Le 30 novembre 2009, des membres individuels du large réseau de HAI ont rassemblé les prix qu’un patient aurait dû payer (lorsqu’il s’acquitterait du prix entier) pour des capsules/comprimés de ciprofloxacine 500 mg, dans la pharmacie la plus proche. La ciprofloxacine est un antibactérien à large spectre, utilisé pour traiter plusieurs infections courantes.

La carte ci-dessus indique le prix en pharmacie pour une cure de 7 jours (14 comprimés) en USD pour le médicament d’origine produit par Bayer (originator brand en Anglais) et pour le générique équivalent le moins cher (lowest priced generic en Anglais). Plus les bulles sur la carte sont grandes, plus le prix est élevé. Si vous cliquez sur la bulle, une fenêtre apparaîtra, décrivant le lieu et le prix pour les deux types de médicament. 

Ces prix ne sont pas représentatifs dans un pays donné, vu la grande variation de prix dans certains pays. Toutefois, les chiffres indiquent ce qu’un patient devrait payer en s’acquittant du prix d’achat entier dans ces pharmacies ce jour-là.

La carte démontre que les prix varient considérablement d’un pays ou d’un type de produit à l’autre. Par exemple, le prix pour une cure du produit d’origine dans le secteur privé était le plus élevé en Colombie : plus de 200 fois le prix mesuré dans cinq pays asiatiques, où le prix des génériques était le plus bas – une différence de presque 20,000 %.

L’emploi des génériques moins chers est une étape importante vers l’amélioration de l’accès au traitement. La ciprofloxacine générique est généralement disponible pour des prix beaucoup plus bas que la marque d’origine. Souvent les marges financières sont telles que l’on pourrait réduire encore plus le prix du générique, rendant le traitement encore plus abordable.

Les gouvernements doivent évaluer l’accès aux médicaments indispensables dans leur pays et y donner une vraie priorité. La première étape est de connaître et comprendre le prix et l’accessibilité logistique et économique des médicaments, par exemple en effectuant un compte-rendu des prix et de l’accessibilité des médicaments (cliquez sur «Undertaking a survey» ci-dessus). Il faudrait ensuite identifier les causes des prix élevés et des difficultés d‘accès, développer et instaurer les mesures et stratégies nécessaires et surveiller leur effet pour s’assurer que les patients profitent de la baisse des prix et de l’amélioration de l’accès. Si vous désirez connaître les faits en détail, veuillez consulter le mode d’emploi ou d’autres documents fournis par ce site.

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Un vistazo en un día al precio del tratamiento con ciprofloxacino 500 mg en comprimidos

El 30 de noviembre de 2009 individuos de la amplia red de HAI recopilaron el precio que un paciente pagaría (si pagase el precio íntegro) por los comprimidos / cápsulas de ciprofloxacino 500 mg en su farmacia detallista privada más cercana. El ciprofloxacino es un antibacteriano de amplio espectro usado para el tratamiento de varias infecciones comunes.

El mapa les muestra los precios de un tratamiento de 7 días (14 comprimidos) en dólares estadounidenses para el producto de marca original fabricado por Bayer (originator brand en inglés) y el precio del equivalente genérico de menor precio (lowest priced generic en inglés) en la farmacia. Cuanto mayor era la «burbuja», mayor era el precio. Al hacer clic en la «burbuja» aparecerá un cuadro de texto que le indicará la ubicación y el precio para ambos productos. Estos precios no deberían ser considerados como representativos de la situación en un país determinado, ya que existe una gran variación de precio dentro de algunos países. Sin embargo, son un indicativo de lo que los pacientes tendrían que pagar si abonasen el precio íntegro al por menor, en esas farmacias en ese día.

Como se puede observar en el mapa, los precios varían considerablemente entre países e incluso entre tipos de producto. Por ejemplo, el precio por un tratamiento del producto de la marca original en el sector privado era más de 200 veces mayor en Colombia que en cinco países asiáticos, donde el precio de genéricos era el más bajo, una diferencia de casi el 20.000%.

El uso de genéricos de bajo precio es un paso significativo hacia la mejora del acceso al tratamiento. El ciprofloxacino genérico está disponible principalmente a un precio mucho menor que el producto de marca original y, en muchos casos, existe un amplio margen para reducir el precio del genérico aun más, haciendo que el tratamiento sea más asequible.

Los gobiernos deben examinar el acceso a medicamentos básicos asequibles en sus países y darles la prioridad que merecen. El primer paso es la comprensión del precio del medicamento, su disponibilidad y la situación de asequibilidad, por ejemplo, mediante una evaluación del precio del medicamento y su disponibilidad (haga clic en « Undertaking a survey» arriba). A continuación deberían identificarse las causas de los elevados precios y la escasa disponibilidad, desarrollando e implementando políticas y estrategias y controlando su impacto para garantizar que los pacientes se beneficien de precios inferiores y que la disponibilidad mejore. Se ofrece más información en el manual y otros materiales disponibles en este sitio web.

Haga clic para acceder a lo siguiente:

Однодневный «срез» цен на курс лечения 500 мг таблетками ципрофлоксацина

30 ноября 2009 года участники широкой сети HAI записывали цены, которые пришлось бы заплатить пациенту (при оплате полной стоимости) за 500 мг таблетки/капсулы ципрофлоксацина в ближайшей частной розничной аптеке. Ципрофлоксацин представляет собой антибактериальное средство широкого спектра действия, использующееся при лечении различных распространенных инфекций.

Карта, представленная выше, отражает цены в долларах США за 7-дневный курс лечения (14 таблеток) за оригинальный брендовый продукт, выпущенный Bayer (по-английски «originator brand»), и самый недорогой генерик-заменитель (по-английски «lowest priced generic») в аптеке. Чем больше «пузырь», тем выше цена. Если вы кликнете по «пузырю», появится текстовое окошко с месторасположением аптеки и ценами на оба типа лекарств. Указанные цены нельзя рассматривать как представляющие полную картину в данной стране, т.к. существует значительный разброс цен внутри некоторых стран. Однако цены отражают то, что пациентам пришлось бы заплатить, уплачивая полную розничную цену, в конкретных аптеках в конкретный день.

Как показано на карте, цены значительно разнятся от страны к стране, а также между типами продукта. Например, курс оригинального брендового лекарства в частном секторе была максимальной в Колумбии, более чем в 200 раз превышая минимальную цену в 5 азиатских странах, в которых цена на генерик была минимальной – разница почти в 20 000%.

Использование недорогих генериков – значительный шаг по улучшению доступа к лечению. Генерик ципрофлоксацина доступен преимущественно по значительно более низкой цене, чем оригинальный брендовый продукт, и во многих случаях есть возможность дальнейшего снижения стоимости генериков, что позволит сделать лечение еще более доступным.

Государственным органам следует контролировать доступность недорогих жизненно важных медикаментов в своих странах, а также предоставить им приоритет, которого они заслуживают. Первым шагом является понимание ситуации с ценой на лекарства, наличием и доступностью, например, посредством проведения исследований, касающихся цен на медикаменты и их наличия (кликните «Проведение исследования» [Undertaking a survey’] выше), затем определение случаев высоких цен и недостаточного наличия, разработка и внедрение политики и стратегий, а также мониторинг их влияния для подтверждения выгод для пациентов от снизившихся цен и увеличившегося наличия лекарств. Более полная информация приведена в руководстве и других материалах, которые доступны на этом вебсайте.

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Egyptian court provisionally suspends new price-setting system

In September 2009 a ministerial decree went into effect that changed the way medicine prices are set in Egypt. Following the filing of a lawsuit by the Egyptian Initiative for Personal Rights (EIPR) against the decree, and the subsequent court case, the Court of Administrative Justice provisionally suspended the new system in April 2010.

Under the former legislation, patient prices were set using a cost-plus system (based largely on the cost of manufacturing plus the addition of fixed percentage mark-ups in the supply chain plus tax). However, often prices were determined based on negotiations between the national Pricing Committee and the pharmaceutical company.

Key features of the new system include:

  • Prices of single-source originator brands are set at 10% less than the lowest company-declared patient price in 36 countries (predominantly in Europe and the Middle East)
  • Prices of generics are set at 30%, 40% or 60% less than the originator brand price, depending on the manufacturing standard (member of ICH, WHO prequalified manufacturer etc) and ownership.

EIPR stated during the court case that the new system was flawed and that prices would increase, especially for generics. EIPR called on the Ministry of Health to permit civil society to contribute to the development of a workable and equitable pricing system. Click here to access a media statement from EIPR on the court decision.

An updated compilation of national and multi-country sources of medicine price information

An updated compilation of national and multi-country sources of medicine price information that can be accessed through the internet is now available on the HAI Global Medicine Prices website [http://www.haiweb.org/medicineprices].

For national price information at http://www.haiweb.org/medicineprices/national-medicine-prices-sources.php and for multi-country price information at http://www.haiweb.org/medicineprices/international-medicine-prices-sources.php

We are very interested to hear of any other sources that you may know of which we can add to the lists.

Large gaps in medicines’ availability and great price variations among countries continue to make many essential medicines inaccessible to the poor, according to the 2009 MDG Gap Task Force Report

People in developing countries are paying 3 to 6 times more than they should be paying for essential medicines, mostly due to the unavailability of generic alternatives. In its latest Report on the Millennium Development Goals, the MDG Gap Task Force calls on the international community as well as national governments to step up efforts to improve the availability and affordability of essential medicines. (MDG 8 - Strengthening the Global Partnership for Development in a Time of Crisis - Target e Access to affordable essential medicines).

The price of medicines in developing countries remains high: high add-on costs in the supply chain (such as margins and taxes), as well as manufacturers’ publicity and marketing costs for drug promotion contribute to considerably inflating the already high price of medicines.

Access to medicines needs to be supported by health and supply systems that ensure medicines are available when needed. In order to secure more affordable prices, stronger public-private collaboration needs to take place, for example by improving health insurance coverage and investigating the delivery of some medicines through the private sector at public sector prices.

As the report emphatically finds, a “needs gap” remains in making essential medicines both available and affordable to the world’s poor, especially for the treatment of chronic diseases. Efforts to improve access to medicines other than those for high-profile infectious diseases must be underpinned by stronger political commitments to make available the necessary financial and technical resources to improve access to medicines in low- and middle-income countries.

The full MDG Task Force 2009 Report is also available here:
http://www.un.org/millenniumgoals/pdf/MDG_Report_2009_ENG.pdf



Civil society calls for abolishing sales tax on medicines in Jordan

Health Action International and Jordanian civil society organisations are calling upon the Jordanian government to repeal the sales tax on medicines in order to improve treatment affordability for its citizens. A fixed sales tax of 4% is applied to all medicines. This is a controversial piece of legislation in a country which has very high prices for originator brands and generics in the private sector.

In the latest attempt to urge government action, the Jordan Pharmacists Association (JPhA) has threatened to close pharmacies across the country for four hours on July 19, unless the government agrees to repeal the sales tax. Dr. Mohammed Al Rawashdeh, Director of the Jordanian Food and Drug Administration (JFDA), has expressed his support for rescinding the sales tax on medicines in a media statement in November 2008 and has called for consolidated efforts to put pressure on the government to scrap this legislation.

Health Action International has long supported the removal of sales tax on medicines. At a workshop entitled Towards Equitable & Affordable Medicine Price Policies in Jordan, held in 2007 and convened by HAI and the JFDA, a diverse range of stakeholders from the public, private and non-profit sectors jointly recommended the removal of sales tax on medicines.

At this crucial time when a wide range of stakeholders in Jordan are stepping up pressure on the government to abolish the sales tax on medicines, HAI and Jordanian civil society groups have sent a position paper (English and Arabic) to policy-makers and the media calling for the repeal of sales tax on medicines. We believe that removing sales tax is one of a number of measures needed to meet the government’s commitment to guarantee its citizens’ right to health, including access to medicines.

The civil society position was reported in an article in the Al-Ghad newspaper on 23 July 2009 and in the Jordan Times on 27 July 2009.



Two analyses published on medicine prices and availability in India

A secondary analysis on the availability, price and affordability of beclomethasone and salbutamol inhalers (used in asthma treatment) in five Indian States was recently published in the International Journal of Tuberculosis and Lung Disease.The author, Dr Anita Kotwani, found that despite their inclusion in India's Essential Medicines List, these inhalers were not available in the public sector (except in Rajasthan) where people on low-incomes seek treatment. Beclometasone had poor availability in the private sector as well (except in Chennai, Tamil Nadu State). Both medicines were unaffordable for the majority of the population.
click here to read the article or contact the author

The second article, by Dr Kotwani et al., focuses on medicines price and availability issues in Rajasthan State. It outlines the results of a survey of 36 medicines, across various therapeutic groups, undertaken in 2003. The authors conclude that the Rasjasthan government should evaluate their procurement and distribution systems as availability in public sector facilities was sub-optimal, transparency is needed on how maximum retail prices are set, and low priced generics should be available in all private and co-operative pharmacies and their use promoted by the State government.
Click here to read the article.


Costs, availability and affordability of diabetes care in the Philippines

Michiyo Higuchi (FASID Research Fellow, Japan) has recently published a report on access to diabetes care in the Philippines. Multilevel interviews were conducted to ascertain the current situation and identify barriers to diabetes care. The research found that many patients took their medication intermittently due to difficulties in accessing medication, which was mainly (but not exclusively) caused by financial constraints. Many medicines prescribed at public facilities were unavailable in public sector pharmacies. Many diabetics believed they needed to buy expensive products at private pharmacies. Read more



Medicine prices, availability, affordability and price components: a synthesis report of medicine price surveys undertaken in selected countries of the WHO Eastern Mediterranean Region

WHO’s Eastern Mediterranean Regional Office and HAI have published a report of findings from medicine price and availability surveys undertaken in 9 countries in the region - Jordan, Kuwait, Lebanon, Morocco, Pakistan, Sudan [Khartoum State], Syria, Tunisia and Yemen. In many of these countries medicines are free of charge in the public sector but availability is often low, forcing people to purchase medicines in the private sector where prices are generally very high for both generic and originator brand products. Individual medicines such as ciprofloxacin and diclofenac have excessive private retail prices in the region. In the private sector, lowest priced generics are on average half the price of their originator except in Kuwait, Morocco, Pakistan and Tunisia where pharmaceutical policies and pricing regulations result in only a small difference in their prices. Read more



“Stop Medicine Stock-Outs”:
a regional campaign to improve access to medicines in public health facilities

One-third of the world population cannot regularly access the essential medicines they need. The most affected are populations in Africa, where availability and price are the biggest barriers to access. At any time, public health facilities in Africa have in stock only about half of a core set of essential medicines. These are medicines used to treat common diseases such as malaria, pneumonia, diarrhoea, HIV, TB, diabetes and hypertension; all of which are among the highest causes of death in Africa.

On 26th February, HAI Africa launched a campaign in Nairobi, in collaboration with other organisations active in the region, to call upon governments to re-examine their commitment and progress towards ensuring access to affordable medicines in Africa. Partners in this campaign invited African governments to meet their obligations to provide essential medicines to their people by increasing the national budgetary allocation for the purchase of these medicines and by ensuring efficiency and transparency in the procurement, supply, and distribution of medicines. To read the campaign statement, please click here.

The Stop Stock-Outs campaign has now launched its own website to raise awareness globally and invite all relevant stakeholders to take action to ensure access to essential medicines for all.

Ugandan anti-malaria medicines market

Medicines for Malaria Venture (MMV) identified that the anti-malaria medicines market in malaria-endemic countries is poorly described and adapted the WHO/HAI medicine price and availability survey tool to better understand the anti-malaria medicines market; the first study was carried out in Uganda during 2007. Key findings of the study were presented recently at the 2008 American Society of Tropical Medicine and Hygiene (ASTMH) Annual Meeting in New Orleans as part of a session entitled “The Anti-malarials market in Africa: Do we know enough?


The cost of treating diabetes

The prevalence of diabetes in developing countries is rapidly increasing due to urbanisation and lifestyle change. For diabetes patients it is essential to have regular access to treatment to prevent complications or death. Type 1 diabetes patients require insulin therapy; Type 2 patients need treatment with oral hypoglycaemic agents or insulin. WHO/HAI intern Birgit Volman analysed the price and availability of diabetes treatments in low- and middle-income countries (medicines, syringes and monitoring tools).


The Lancet publishes analysis of findings from 45 medicine price surveys

On 1 December 2008 The Lancet draws attention to key barriers to accessing medicines - high prices and low availability - by publishing an extensive article on the findings from 45 medicine price and availability surveys undertaken using the WHO/HAI survey tool.

The study, entitled Medicine prices, availability, and affordability in 36 developing and middle-income countries: a secondary analysis by Alexandra Cameron and others,  presents data for 15 medicines included in at least 80% of the 45 surveys. Importantly, the article discusses policy options to lower prices and improve treatment affordability.

Click below to access:
Full article
Press releases: Lancet, HAI, WHO
Media: Mail Today (India), The Herald (UK)
The Lancet, Early Online Publication, 1 December 2008 doi:10.1016/S0140-6736(08)61762-6
Correspondence: Better measures of affordability required; LM Niëns, WBF Brouwer
http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(09)60649-8/fulltext
Better measures of affordability required – Authors' reply; A Cameron, M Ewen, M Auton, R Laing
http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(09)60650-4/fulltext



Important initiative in Pakistan to develop medicine pricing policy

On the instructions of the Prime Minister, Pakistan's Federal Ministry of Health has formed a Board to formulate medicine pricing policy. The aim of the Board is to develop an official policy on medicine pricing that is transparent, predictable and visionary, and meets the Government's objective of improving people's access to quality essential medicines at affordable prices, especially for the poor. The Board is chaired by the Federal Secretary of Health, and membership includes the Federal Director General of Health and high-level officials from the Ministries of Industry, and Commerce and Finance. Representatives of multinational pharmaceutical companies, the Pakistan Pharmaceutical Manufacturer's Association, and The Network for Consumer Protection are also members of the Board. The Cost Accountant of the Federal Ministry of Health is the secretary.

The Board invited Dr Zafar Mirza, Regional Adviser on Essential Medicines and Pharmaceutical Policies from WHO's Eastern Mediterranean Regional Office, to set the context for the Board's work on pricing policy, at its first meeting held on 14 November 2008 in Islamabad. The WHO Representative in Pakistan, Dr Khalif Bile Mohamud, also participated in the meeting.

In Dr Mirza's keynote presentation to the Board, he shared WHO's perspective on medicine prices and policies and presented key findings from 11 national medicine price surveys conducted in the region using the WHO/HAI survey methodology, including a survey conducted by The Network for Consumer Protection in Pakistan. Using data from this survey, he focused on the poor affordability of commonly used essential medicines in Pakistan, assessed using new approaches under developed by a WHO/HAI intern from the University of Rotterdam (catastrophic spending and impoverishment due to purchasing medicines). This drew much attention and discussion by Board members. In his presentation, Dr Mirza also outlined pricing policies in other countries in the region, and gave recommendations for the Board to consider.

In its future meetings, the Board will discuss these aspects further, seek advice from other stakeholders, and then draft and officially notify the new medicine pricing policy. An implementation stage will follow. It will be important to monitor prices, availability and affordability to assess the impact of the new policy in improving access to affordable treatments.

Click here to access the presentation and a summary report of the Pakistan survey findings. Query the database to access all the results from the Pakistan survey.



UN report highlights lack of access to essential medicines

WHO/HAI methodology recognised by UN as standard to measure medicine prices and availability

The report Delivering on the Global Partnerships for Achieving the Millennium Development Goals was launched on September 4th by the UN Secretary-General Ban Ki-Moon. Prepared by the MDG Gap Task Force, it describes progress towards achieving MDG 8 (develop a global partnership for development), including Target 8.E: In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries.

Target 8.E was measured using nine indicators. A key source of data used to report on these indicators was surveys of medicine prices, availability, affordability and price components undertaken using the WHO/HAI methodology.

Results from 30 countries show that, on average, availability of medicines is far from optimal: 34.9% in the public sector and 63.2% in the private sector. The retail price of lowest priced generic medicines is over 6 times international reference prices (IRPs) in the private sector, and about 2.5 times IRPs in public sectors where patients purchase medicines. Prices of originator brand medicines were considerably higher. Thus, access to essential medicines is being hindered by low availability, particularly in the public sector, as well as high prices.

Treatments are simply beyond the reach of millions of people across the world. For example, in the private sector in Pakistan the lowest paid unskilled government worker has to work over 6 days to buy a month's supply of ranitidine to treat an ulcer (purchasing the lowest priced generic). In Indonesia, it takes 4 days wages to buy just one salbutamol inhaler to treat asthma.

Countries must act to reduce prices and improve the availability of essential medicines. Low government procurement prices must be passed on to patients, taxes and duties on essential medicines must be abolished, mark-ups must be reduced and made transparent, there must be adequate and sustainable public sector financing for medicines, and increased use of low cost quality generic medicines.


Read more:
HAI press release
Report of the MDG Gap Task Force: English, French, Spanish
Section of report on Access to Affordable Essential Medicines
UN press release
UN fact sheet ‘Where are the gaps’: English, French
UN MDG Gap Task Force website for further information
WHO website – price and availability data used in the report
HAI fact sheet on WHO/HAI Project on Medicine Prices and Availability

Medicine price, availability and affordability data, for all surveys, can be accessed by clicking on 'Database' above


Improving Access to Chronic Disease Medicines

The global burden of chronic diseases continues to grow. In 2005 an estimated 35 million deaths resulted from chronic diseases, principally cardiovascular disease, diabetes, cancers, and chronic respiratory disease. This represents 60% of all deaths globally. By 2020 this figure is expected to rise to 73%, representing 60% of the global disease burden. Clearly, urgent action is needed to reduce premature mortality from these largely preventable diseases

In December 2005, WHO and a number of organisations (including HAI) met in Cairo to discuss a global initiative to address gaps in chronic disease care. For the meeting, WHO and HAI prepared a report showing treatments for chronic diseases are largely unaffordable, and the medicines often unavailable to those that need them. At the meeting a strategic framework was developed for the global initiative for scaling-up the care of major chronic diseases, with emphasis on improving the availability and affordability of chronic disease medicines.

At the World Health Assembly in May 2008, WHO reported on the 'Prevention and control of noncommunicable  diseases: implemetation of a global strategy'.

Building on the Cairo strategic framework, a meeting was held in Geneva on 27 August 2008 to discuss how WHO and others could support countries to improve the availability and affordability of chronic disease medicines.  Evidence on the poor availability and poor affordability of medicines to treat diabetes, cardiovascular disease and respiratory illness was presented, and activities underway by various organisations to improve the situation. Discussions were held on methods to assess gaps in access to chronic disease medicines, policies and programmes that address the gaps, potential partnerships, and indicators to monitor progress.

In his opening address, Dr Hussein Gezairy, Regional Director WHO EMRO, said ‘tackling these challenges is not easy at all. We need to lead this effort with seriousness, with sincerity and with the commitment that it deserves. It requires work on a war footing: a war that is multi-pronged, well-strategized and well-resourced’  So we now look to WHO to act; to work with countries to develop, implement and enforce policies and programmes that ensure access to chronic disease medicines for all.

Click here to access the meeting agenda, then click on the presentations made at the meeting and outcomes of the discussions.



Second edition of the survey manual now available

Second edition survey manual
Project Co-ordinators Alexandra Cameron (WHO) & Margaret Ewen (HAI) reviewing the manual


During the World Health Assembly in May 2008, Health Action International and the World Health Organization launched the second edition of their manual entitled Measuring medicine prices, availability, affordability and price components.

Since launching the first edition in 2003, over 50 surveys have been conducted generating reliable information on the prices, availability and affordability of medicines in many countries. A second edition of the manual has been published incorporating the wealth of practical experience gained by national teams conducting surveys in countries around the world. The CD ROM accompanying the manual includes an updated Excel workbook, and new survey tools and background material

What’s new?

Methodology changes:
- Due to the poor availability of medicines, particularly in the public sector, the number of survey areas has increased from 4 to 6 to ensure sufficient price data for analysis
- The core list of 30 medicines has been replaced with a global core list of 14 medicines (used in all surveys) and region-specific lists of 16 medicines. Supplementary medicines of national importance are also included so that a total of 50 medicines are surveyed.
- The method for collecting and analysing price components (mark-ups, taxes, other charges) has been further developed. To enable comparisons across countries, data is now analysed according to 5 stages in the supply chain: manufacturer’s selling price + insurance/freight (Stage 1); landed price (Stage 2); wholesale/Central Medical Store price (Stage 3); retail/Regional Medical Store (Stage 4); dispensed price (Stage 5).
New guidance:
New or expanded chapters include advice on comparing data across countries, using the findings to identify policy options, advocacy activities to improve the availability and affordability of medicines, and establishing routine monitoring of medicine prices and availability
Workbook
Improvements include automatic data analysis according to the level of care where medicines are expected to be available, and limiting the analysis to medicines on the national Essential Medicines List.
New tools
New training materials, a survey report template, frequently-asked questions and other resources are also available on the CD ROM.

Ordering the manual?

To order a copy of the manual and CD ROM, email your request to the WHO PSM documentation centre (edmdoccentre@who.int). A copy will be sent free-of-charge. You can also download the manual, workbook and all other material from this website.



Jordanians move towards equitable & affordable medicine prices policies

Approximately 90 participants from the Ministry of Health and other government agencies, pharmacist and physician associations, NGOs, academia, pharmaceutical industry and others met at the Dead Sea, 4-5 December 2007, to discuss ways to make medicines more available and affordable in Jordan. The workshop was held under the patronage of his Excellency, Minister of Health Dr. Salah Mawajdeh. It was co-hosted by the Jordan Food & Drug Administration (JFDA) and Health Action International.

The objectives of the workshop were to disseminate the findings and recommendations of the Jordan price survey, identify policies and programmes to improve, in particular, the availability of medicines in the public sector and the affordability of medicines in the private sector, and to establish a task force to take the work forward.

In addition to presenting the survey results, plenary presentations and panel discussions covered various policy and pricing issues in Jordan and the Eastern Mediterranean region. In smaller groups, participants then discussed strategies to improve government procurement of medicines and their availability in public sector facilities, price-setting in the private sector, improving treatment affordability through pro-generics policies and programmes, and the impact of intellectual property rights and trade agreements on access to affordable medicines in the country. Group recommendations for action were then presented in plenary.

One of the many recommendations of the workshop was to remove customs duty (up to 5% on most imported medicines) and sales tax (4% on all medicines). On 3 January 2008, the Director General of the JFDA Dr Mohamed Rawashdeh announced in a major Jordanian daily newspaper that exempting customs and sales taxes on medicines will not affect the Jordanian economy but will help improve the affordability of treatments. Subsequently, the Pharmaceutical Association and Pharmaceutical Manufacturers Association supported the JFDA’s call for taxes to be removed on medicines. The President of the Parliament’s Health and Environmental Committee, Mr. Khalil Al Ruqad, responded positively, saying the Committee will meet to discuss abolishing these taxes in order to lower medicine prices and improve affordability. Most press articles can only be viewed in Arabic.



Survey shows patients pay extremely high prices for medicines in private pharmacies in the UAE

The results of a survey undertaken in the United Arab Emirates in late 2006 are now available in the database (the survey report is expected soon). The survey was conducted by Dr Nadia Abdul-Malek Younes, head of the private pharmacy sector of the Federal Ministry of Health. Twenty-five medicines (originator brand and lowest priced generic equivalent of each) were surveyed in 23 private retail pharmacies and 18 public sector outlets. Public sector procurement data was based on GCC procurement system purchases. Median supplier prices in the 2005 Management Sciences for Health International Drug Price Indicator Guide were generally used as reference prices.

Key findings included:

  • Expensive originator brands were being purchased by the government (about 5 times the reference prices) as well as much cheaper generics (whose prices were similar to the reference prices)
  • Poor availability in the public sector where medicines are free (61% for generics, 17% for originator brands)
  • Availablity in the private sector was excellent for originator brands (100%) but not cheaper generics (74%)
  • Extremely high patient prices in the private pharmacies (originator brands were about 24 times the reference prices; lowest priced generics were about 14 times the reference prices)
  • Lowest priced generics were generally affordable when purchased by the lowest paid unskilled government worker in the private sector
  • but originator brands were far less affordable e.g. a person with arthritis would have to work 2.5 days to buy a month's supply of diclofenac 25mg tabs originator brand (Voltaren) but less than a day for lowest priced generic equivalents. Price components were not measured but wholesale and retail margins were each considered to be about 20%.


Survey on medicine knowledge of urban residents - China

Following confirmation that some medicine prices were very high in Shangdong Province (China), the survey team at the Center for Health Management and Policy of Shangdong University conducted a survey on medicines knowledge of urban residents in Jinan. Those surveyed generally preferred buying medicines at private pharmacies because they were conveniently located and prices were often cheaper than in public health centres. Click here to read more

Monitoring medicine prices, availability and affordability

In response to survey findings, a number of countries are now regularly monitoring medicine prices, availability and affordability. Three of the countries were pilots for WHO and HAI. In February 2008, WHO and HAI are convening a meeting with all countries currently monitoring medicine prices and availability, to share experiences and develop a set of minimum standards for this work. A number of countries keen to establish monitoring systems will also participate in the meeting.

Click here to read the monitoring reports from:
Uganda Oct/Dec 2006
Kenya April 2006, Oct 2006, January 2007
Tanzania Nov/Dec 2006
Tanzania Jun/July 2007
Malaysia 1/2007

Eastern Mediterranean Ministers resolve to tackle high medicine prices

Medicine price, availability and affordability issues were discussed by delegates at the recent meeting of the Regional Committee for WHO’s Eastern Mediterranean Region, held in Cairo 20-23 October 2007.

Dr Zafar Mirza, regional advisor on essential medicines and pharmaceutical policies, presented the results from 11 surveys undertaken in the region using the WHO/HAI medicine price measurement methodology. Key findings included:

  • Substantial differences in government procurement prices across countries
  • Government purchasing of expensive originator brands, as well as cheaper generics, in all but 3 countries. On average, originator brands were about 3 times more expensive than generics. Prices of generics were often high.
  • Availability in public sector facilities was very poor e.g. 16 of the 35 surveyed medicines were not found in any outlet surveyed in Yemen, 23 of 29 medicines were not found in 50% of the outlets in Pakistan
  • Excessive prices in the private sector for originator brands and lowest priced generics e.g. Sudanese patients were paying 18 times international reference prices for originator brands. Lowest priced generics were over 5 times the reference prices in most countries
  • Most treatments purchased in the private sector were unaffordable for the poor
  • Some countries were applying taxes to essential medicines

A lengthy discussion followed with comments from Ministers, or their representatives, from 16 countries. They acknowledged the many problems related to medicine prices in both public and private sectors. Many also noted that the TRIPS Agreement had contributed to rising prices and diminished access to medicines, especially in developing countries. Various policy and programme options were mentioned including the increased use of quality generics to improve affordability, regressive mark-ups to encourage the dispensing of lower priced generics, pooled procurement, plus greater transparency and the sharing of price information. WHO Regional Director, Dr Gezairy, said the issue of medicine pricing was sensitive and of the utmost importance, and offered a number of options for countries to consider to reduce prices. HAI urged countries to develop, implement and enforce sound evidence-based policies and programmes, and monitor their impact, to ensure medicines are affordable and available to all.

A resolution was passed that featured the establishment of a web-based medicines prices hub in the region to share information on medicine prices and pricing structures, as well as best practices in medicine management. This innovative approach is welcomed as it will improve price transparency and empower governments to negotiate for more favourable prices. The resolution also urged governments to strengthen pricing policies (including public procurement of generics, and enhanced competition amongst suppliers) and rationalize supply chain costs in the private sector. WHO EMRO resolved to support Members States in this work including the development of guidelines on pricing policies and sharing information on best practices from other regions.

Yemen – poor public sector availability and some very pricey medicines in the private sector

In July 2006, a medicine price and availability survey was undertaken in Yemen by Dr Yaseen Ahmed Al-qubati and Eng. Abdul-Karim Shaher Ahmed from the Supreme Board for Drugs and Medical Appliances. Data was collected for 35 essential medicines (originator brand and lowest priced generic equivalent) in a total of 20 public sector facilities and 20 private pharmacies in Sana’s City and the main cities in 3 governates (Aden, Hodiedah and Taiz).

Key findings include:
  • public sector availability was extremely poor (median 5%). Sixteen of the 35 medicines (45%) were not found in any of the facilities including metformin, phenytoin, atenolol, salbutamol inhaler, nevirapine, acyclovir, levothyroxine and beclometasone inhaler.
  • availability was better in private retail pharmacies – median 90% for generics and 50% for originator brands.
  • Overall, in private pharmacies, originator brands were 5 times more expensive than lowest priced generics. Originator brand ciprofloxacin (Ciprobay) was a massive 129 times the international reference price, while the lowest priced generic equivalent was much cheaper (about 5 times the reference price). The originator brand of metronidazole tabs (Flagyl) was 35 times the reference price. The lowest priced generic equivalent was less, but still high cost at 9 times the reference price.
  • In the private sector many standard treatments were simply not affordable. The lowest paid unskilled government worker would have to work nearly 2 days to pay a months treatment with amitriptyline or 1.5 days for metformin (lowest priced generics).
The authors’ recommendations included:
  • Updating the EDL and ensuring all essential medicines are available in public facilities.
  • Rationalising medicine expenditure, adopting a suitable pricing system and seeking alternative funding for medicines
  • Reviewing manufacturer’s prices and introduce regressive mark-ups in the supply chain
  • Encouraging the prescribing and dispensing of low-cost generics to improve treatment affordability, especially for the poor.

Click here to read the survey report and query the database to view all data

THIS DAY (Nigeria): On the High Cost of Medicines

The following article, published in ‘This Day’ on 20 August 2007, comments on the findings of a price and availability survey conducted by the Nigerian Federal Ministry of Health in 2004, using the WHO/HAI methodology. Price and availability data was collected for 34 prescription medicines, across 129 facilities in the public and private sectors in 6 states in the country.

It is an unsettling irony that in a country plagued by all kinds of diseases and with a measly average personal income, simple medications are so expensive to buy. This long standing tragedy has been confirmed by a recent World Health Organisation (WHO) report that rates Nigeria as one of the eight countries in the world with exceptionally exorbitant drug prices. The international health agency is worried, as all well-meaning Nigerians should, about the implication of this for health care delivery.

The first thing to be said about this disconcerting report is that it indicts the Nigerian government as one that is insensitive to the health care needs of the people. The WHO report shows that as many as 90.2 per cent of Nigerians who live on less than N256 a day and government workers who earn a minimum wage of N179.40 daily, cannot afford essential drugs. This, of course, includes simple medications for the treatment of common diseases like fever, malaria and other variants of it so common in the country. For the millions of Nigerians who fall within this bracket, the implication of this high cost of medicines is better experienced than imagined. There is such a grim possibility that most of such people had never had the opportunity of taking any pharmaceutical drugs because they cannot afford them. It is no wonder then that patronage of herbal potions prepared in less than healthy environments and with doubtful therapeutic value is so widespread in the country.

As the WHO aptly noted, medicine prices are important because most Nigerians purchase their medicines out of pocket. Thus high medicine prices would constitute a major barrier to access to health care. That is putting it starkly. The truth is that most Nigerians depend on self-medication for simple common ailments. When it becomes difficult for them to afford medicines for the treatment of such ailments, it would only spell doom for many families. In many instances, a number of them have simply resigned themselves to fate while others passed away, just because they could not afford to buy their common pills or pay for the doctors prescription. Which ever way this is viewed, it is a sad commentary on governance in the country.

What then is the way out of this embarrassment? We agree with the WHO that the government needs to review the nations drug procurement policy, without necessarily compromising standards. The National Food and Drug Administration and Control (NAFDAC), should consider prices before issuing marketing authorization to manufacturers and importers. This is crucial because there is evidence that a good number of them exploit consumers through profiteering. The NAFDACs role should not be to merely check fake and substandard products but also to ensure that drugs are sold at reasonably affordable prices.

There is also the need for government to take another look at the tariffs on pharmaceuticals. It is possible that they are not friendly enough to good pricing in this vital sector. Where that is the case, the government should not hesitate to review them downward. Local manufacturers need also to enjoy favourable excise duties and lower tariffs on raw materials. All of this may lead to a significant reduction in drug prices. Without easy access to affordable and genuine drugs by Nigerians, the nations health care system is imperilled. We see no reason why generic medicines should be too expensive for an average Nigerian. If it requires that government should subsidize such drugs, why not. That sort of sacrifice can never be too much for the health of the people.

Click here to access the survey report

 
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