Document Detail


Price differentiation and transparency in the global pharmaceutical marketplace.
MedLine Citation:
PMID:  15987224     Owner:  NLM     Status:  MEDLINE    
Abstract/OtherAbstract:
Pharmaceutical manufacturers have increased the availability of their products and sometimes increased their own financial returns by charging lower prices outside of the US and by discounting to lower-income patients in the US. Examples include discounted HIV-AIDS drugs in developing countries and pharmaceutical manufacturers' discount cards in the US. Representatives of some international organisations argue that the price reductions are insufficient to make the medications widely available to lower-income patients. The WHO advocates both differential pricing and price transparency. While its efforts are well meaning, this paper identifies six concerns about its methods of comparing the price of a given molecule across manufacturers and across countries. More significantly, the WHO efforts to increase transparency are likely to lead to less price differentiation and less access to innovative pharmaceuticals. An important reason why manufacturers are reluctant to charge lower prices in lower-income countries is that they fear that such low prices will undermine the prices they charge to higher-income consumers. International organisations should not facilitate transparency but should dissuade governments from making price comparisons and basing their prices on those of lower-income countries. Furthermore, they should endeavour to keep low-priced and free drugs in the hands of the low-income consumers for which they were intended.
Authors:
David B Ridley
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Publication Detail:
Type:  Journal Article; Research Support, Non-U.S. Gov't    
Journal Detail:
Title:  PharmacoEconomics     Volume:  23     ISSN:  1170-7690     ISO Abbreviation:  Pharmacoeconomics     Publication Date:  2005  
Date Detail:
Created Date:  2005-06-30     Completed Date:  2005-10-07     Revised Date:  2009-11-03    
Medline Journal Info:
Nlm Unique ID:  9212404     Medline TA:  Pharmacoeconomics     Country:  New Zealand    
Other Details:
Languages:  eng     Pagination:  651-8     Citation Subset:  T    
Affiliation:
The Fuqua School of Business, Duke University, Durham, North Carolina, USA. david.ridley@duke.edu
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MeSH Terms
Descriptor/Qualifier:
Cost Control
Costs and Cost Analysis
Drug Costs*
Drug Industry / economics*
International Cooperation
Marketing*
Patents as Topic
Prescription Fees*
World Health Organization

From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine


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