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Medicines Pricing: Limitations of Existing Policies and New Models

  • Sabine VoglerEmail author
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Abstract

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.

Keywords

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 

Abbreviations

AIDS

Acquired immune deficiency syndrome

DNDi

Drugs for Neglected Diseases initiative

EPR

External price referencing

EU

European Union

EUnetHTA

European network for health technology assessment

GAVI

Global Alliance for Vaccines and Immunisation

GCC

Gulf Cooperation Council

HAI

Health Action International

HIV

Human immunodeficiency virus

HTA

Health technology assessment

ICER

Incremental cost-effectiveness ratio

JPA

Joint Procurement Agreement

LMIC

Low- and middle-income countries

MCDA

Multiple-criteria decision analysis

MEA

Managed entry agreement(s)

MWPP

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

NHS

National health service

OECS

Pharmaceutical Procurement Service of the Organization of Eastern Caribbean States

PAHO

Pan-American Health Organization

PPRI

Pharmaceutical pricing and reimbursement information

R+D

Research and development

RCT

Randomized controlled trial(s)

RWD

Real-world data

RWE

Real-world evidence

SADC

Southern African Development Community

UHC

Universal health coverage

UN

United Nations

UNFPA

United Nations Population Fund

UNICEF

United Nations International Children’s Emergency Fund

USD

United States dollar

VBP

Value-based pricing

WHA

World Health Assembly

WHO

World Health Organization

WTP

Willingness-to-pay

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Copyright information

© 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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