E-DRUG: Philippines medicine prices
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Dear E-Druggers
I would like to draw your attention to 2 reports on medicine prices in
the Philippines based on recent surveys carried out there using the
WHO/HAI methodology. One investigated medicine prices at the various
levels of the devolved public procurement system. The other was a study
of price components of medicines sold in the Philippines. Both summary
and full reports are available by clicking on the link to "Survey
reports" on the HAI/Medicine Prices website -
http://www.haiweb.org/medicineprices.
Public procurement prices:
The survey found that in the Philippines:
- There is extreme variability in the efficiency of public procurement
of essential medicines in the Philippines
- DOH-retained hospitals are more efficient at procurement of medicines
than provincial and municipal hospitals.
- DOH-retained, provincial and district hospitals procure generic
medicines at almost 3 times the international reference price.
- A few health facilities were procuring generic essential medicines at
prices comparable to international prices but most were not.
- PITC Pharma is able to procure low-cost generic essential medicines at
levels similar to the international reference prices.
- Interpretation and implementation of procurement acts and regulations
varies between procurement entities.
- Health facilities operating revolving funds have increased
availability of medicines but at higher prices.
Price components:
The survey found that in the Philippines:
- There is a lack of transparency in the pricing of generic and
originator brand medicines in the private sector.
- For generic products mark-ups ranged from 5% - 355% at the retailer
level, and 18 - 117% at the distributor level
- Mark-ups on originator brand products were usually of the order of 5%
- 8% at private retail pharmacies
- VAT adds significantly to the price of medicines and has a larger
effect than expected when applied on VAT-inclusive prices earlier in the
supply chain
- Public pharmacies tend to charge fixed retail markups of up to 30%.
- The senior citizen's discount has been minimized by price increases
and is essentially paid for by patients
- Discount schemes and patient assistance programmes exist which may
lead to irrational medicine selection by patients and/or their physicians
- The market structure, market segmentation and low confidence in
generics perpetuates the observed pricing structures and lower than
desired use of low-priced generic medicines
For full details download the reports at:
http://www.haiweb.org/medicineprices
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Douglas Ball
Pharmaceutical consultant
Public Health and Development
E-mail: douglasball[AT]yahoo.co.uk