[e-drug] Medicine prices in Lebanon

Medicine prices in Lebanon
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Dear e-druggers

Health Action International (HAI) has just posted new medicine prices
data from Lebanon on its website (http://www.haiweb.org/medicineprices).
Lebanon's is the 11th survey to be posted on HAI's web site as part of
the WHO/HAI Project on Medicine Prices. The Lebanon survey was conducted
in 2003 under the leadership of Dr. Rita Karam, and targeted 32 commonly
used medicines, including 26 on the WHO/HAI core list and 6 of
particular interest in the Lebanese context.

Medicine procurement prices obtained from the central public sector were
compared to international reference prices. For 18 target medicines
purchased in generic form, prices were 1.2 times the corresponding
reference prices. (1.2 = median result among medicines and procurement
orders analyzed. Reference prices represent bulk suppliers and were
obtained using the MSH price indicator guide). Six target medicines
were purchased in originator brand form at a median of 5.9 times the
reference prices.

Only 6 of the target medicines were found in any form in at least 4 of
the 20 public outlets visited, and just 1 (co-trimoxazole syrup) was
found in at least half of the outlets. By contrast, in private
pharmacies, 26 target medicines were found in at least half of the 40
outlets surveyed in the originator brand version, 20 medicines were
available in at least half of outlets in generic version, and 18 were at
least 50% available in both versions.

The survey found a typical private sector "brand premium" of 137%. This
was calculated on the basis of 22 medicines that were available in both
originator brand and generic version at 4 or more outlets. The median
ratio of brand price to reference price was 13.6 and the median ratio of
generic price to reference price was 5.7. Thus, brand medicines in
Lebanon cost an estimated 137% more than their generic equivalents.

Several analyses of medicines affordability accompany the survey. For
example, an unskilled worker on government salary would need to pay 1.3
days wages to buy a month of originator brand glibenclamide treatment
for diabetes from a private pharmacy, or alternatively, 0.3 days wages
for one month of generic glibenclamide.

The Lebanese government sets official maximums for medicine mark-ups
charged by private sector importers, distributors, and retailers. As a
result, private sector prices are remarkably consistent from outlet to
outlet. The 25th and 75th percentile price observations were identical
for all originator brand medicines surveyed, and also for most
"lowest-priced generics", which are identified at outlet level and may
come from a mix of manufacturers.

Regards,

Dr Rita Karam, Ministry of Health, Lebanon
Import/Export & Drug Registration Department, Ministry of Public Health
Beirut, Lebanon
Tel: +96 11 615 743, Fax: +96 11 615 751
E-mail: rita.mouawad@fs.usj.edu.lb

Margaret Ewen, Health Action International (HAI) Europe
Jacob van Lennepkade 334T
1053 NJ Amsterdam, The Netherlands
Tel: +31 20 683 3684, Fax: +31 20685 5002
Email: marg@haiweb.org
Web site: http://www.haiweb.org