Medicines Pricing: Limitations of Existing Policies and New Models

  • Sabine VoglerEmail author


Medicine price regulation aims to contribute to more affordable access to medicines for both patients and public payers. While there is strong evidence for its achievements, high prices remain a barrier to access, increasingly also in high-income countries. This chapter discusses existing medicine pricing policies, particularly for new medicines, such as external price referencing (EPR), value-based pricing (VBP), tendering and managed entry agreements, with a particular focus on their limitations. New models to address these drawbacks are presented; these include methodological support tools, collaborative approaches and improved transparency.


Collaboration Cost-plus pricing Differential pricing External price referencing Health technology assessment Managed entry agreement Medicine price Policy Price regulation Pricing Pricing policies Tendering Transparency Value-based pricing 



Acquired immune deficiency syndrome


Drugs for Neglected Diseases initiative


External price referencing


European Union


European network for health technology assessment


Global Alliance for Vaccines and Immunisation


Gulf Cooperation Council


Health Action International


Human immunodeficiency virus


Health technology assessment


Incremental cost-effectiveness ratio


Joint Procurement Agreement


Low- and middle-income countries


Multiple-criteria decision analysis


Managed entry agreement(s)


Manufacturer (price), wholesale (price), pharmacy (retail price net) and pharmacy (retail price gross); alternatively manufacturer, wholesaler, pharmacy and patient


National health service


Pharmaceutical Procurement Service of the Organization of Eastern Caribbean States


Pan-American Health Organization


Pharmaceutical pricing and reimbursement information


Research and development


Randomized controlled trial(s)


Real-world data


Real-world evidence


Southern African Development Community


Universal health coverage


United Nations


United Nations Population Fund


United Nations International Children’s Emergency Fund


United States dollar


Value-based pricing


World Health Assembly


World Health Organization




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© The Author(s) 2020

Authors and Affiliations

  1. 1.WHO Collaborating Centre for Pharmaceutical Pricing and Reimbursement Policies, Pharmacoeconomics DepartmentGesundheit Österreich GmbH (GÖG/Austrian National Public Health Institute)ViennaAustria

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