[e-drug] Entry prices for new medicines fall 35% in Brazil

E-DRUG: Entry prices for new medicines fall 35% in Brazil
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Dear E-Druggers,

News from price regulation study in Brazil:

Published at: http://www.brasil.gov.br/news/history/2013/01/22/entry-prices-for-new-medications-fall-35/newsitem_view?set_language=en

Entry prices for new medications fall 35%

22/01/2013 14:32 - Portal Brasil

Economic regulation has allowed medications to arrive in the hands of
Brazilians at prices 35% lower, on average, than those requested by the
pharmaceutical industry. A study released by the National Health
Surveillance Agency (ANVISA), on Tuesday, January 15, analysed the maximum
prices established by the Chamber for the Regulation of the Pharmaceutical
Market (CMED). 1,115 presentations (pharmaceutical forms such as ointment,
syrup, tablet, etc.) for 433 medications were approved between March 2004
and December 2011.

According to ANVISA Manager of Economic Evaluation of New Technologies,
Gabrielle Troncoso, in most cases the companies request pricing at higher
levels than those that end up being authorized by the government. "The
study indicated that economic regulation has been effective in reducing the
entry prices of medications in our country," said the manager.

Medications (category I) with innovative chemical formulas that are
patented in Brazil and have proven therapeutic gain compared to medication
already used for the same indication represented a minority (3.24%) of the
products launched by the pharmaceutical industry in Brazil during the
period. The majority (45.03%) of products have no patent or proof of
therapeutic gain (category II). New combinations of active ingredients
already in the country and medications in new pharmaceutical forms amounted
to 36.72% of the products analysed.

In the case of category I medications, the maximum prices established were
19% lower than those requested by the pharmaceutical industry, while
category II medications saw a reduction of 37%. Foreign capital companies
accounted for almost 82% of all companies that had products classified as
category I or II.

In the new combinations of active ingredients already in the country and
medications in new presentations (category V) there was a 38% difference
between the price fixed and that requested by the industries. For
medications classified in the "not included" category and those that could
not be classified in any of the categories established by legislation,
prices were reduced by 35% and 45% respectively.Link for the Study Report
(Portuguese):

http://portal.anvisa.gov.br/wps/wcm/connect/31cbde804e311d5694ddb7c09d49251b/trabalho+balanço+resol+2.final.15.Jan.2013.pdf?MOD=AJPERES

Regards,

Adriana Ivama Brummell
adriana.ivama@gmail.com

E-DRUG: Entry prices for new medicines fall 35% in Brazil (2)
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Dear All

What strikes me more than the price reductions is how little R&D and "innovation" is devoted to finding superior new drugs -- the reason for market protections and high prices in the first place. This supports the study that appeared in the BMJ last August about the "Hidden Business Model" of research-based firms. See Harvard University – Edmond J. Safra Center for Ethics: A CHALLENGE TO BIG PHARMA
http://www.ethics.harvard.edu/lab/blog/246-a-challenge-to-big-pharma

Don Light