[e-drug] Report on Fair Pricing Forum 2017 is now available

e-drug
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E-DRUG: Report on Fair Pricing Forum 2017 is now available
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Dear E-Druggers,

The Report of the Fair Pricing Forum held on the 11th May 2017 in Amsterdam is now available in the 2017 website, at

http://www.who.int/medicines/access/fair_pricing/fair_price_report/en/
http://www.who.int/medicines/access/fair_pricing/FairPricingForum2017MeetingReport.pdf?ua=1

I copy-paste the summary here below:

"The multi-stakeholder discussion was seen as a first step towards identifying an actionable agenda towards fair pricing, and reiterated the message that by "fair" pricing,

WHO does not mean "low" pricing.

Fair pricing means pricing that allows for a reasonable return on investment in exchange for an affordable price, which is to say one that does not bankrupt health systems and other payers. It is with such 'sustainable pricing' that the growth of the pharmaceutical sector will be supported and universal access to essential medicines and other health technologies will be ensured.

Governments need to be enabled to play a stronger role in negotiating prices and where appropriate, incentivising needs-based R&D. More cooperative approaches would be helpful, for example with governments sharing information on pricing, and gaining greater leverage when negotiating prices. Governments should see funding for health as an investment that will contribute to greater economic benefits, for example by enabling more health sector jobs in the public and private sectors, in addition to keeping the population healthy.

Greater investment in R&D prioritization should result in development of products that respond to public health needs. With regard to pricing drivers and strategies, a 'value-based' pricing model is not viable in many countries because it does not take into account affordability and total cost.

Used in isolation, it also has the potential to exclude other valuable price-negotiation tools such as tendering and price-volume agreements.

There is a need to fully understand the concept and consequences of 'de-linkage' with respect to development of medicines. At present, there is little transparency on what inputs actually feed into decisions about medicines prices, and there is very little evidence regarding many elements such as the actual R&D investment or the public sector contribution.

For example, the cost of acquisition of a startup company is often conflated with R&D costs. Before de-linkage models are pursued, better definitions of the inputs into price setting are needed, noting that R&D has to be paid for in order to
have the necessary medicines and health technologies.

The need for greater transparency was a recognised as a recurring theme. More transparency on pricing is needed from all stakeholders: from public research entities, defining how much public money is spent on discovery research; from companies, on how much they spend on clinical trials and other development activities, and how much on production costs; and from countries, on how much each one pays for a medicine. Finally, there is a need for further discussion, in order to find solutions to the many different facets of the prices/access issue, to develop a constructive and concrete action plan that can be implemented.".

Raffaella Ravinetto
Medicines Research & Networking
Intsitute of Tropical Medicine, Antwerp

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10th ECTMIH
16-20 October � Antwerp, Belgium
European Congress on Tropical Medicine and International Health
http://www.ectmih2017.be
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Raffaella Ravinetto <rravinetto@itg.be>

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E-DRUG: Report on Fair Pricing Forum 2017 is now available (2)
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[Thanks Bonnie - These are very good points and maybe education of politicians should be high on the list of priorities - unfortunately politicians change too often. BS]

Thanks for this report announcement from Raffaella,

A good point is made, that 'fair pricing' does not mean 'low pricing'. However, a reading of most public procurement laws across the developing world, will suggest that the commonly held position of Government is to aim for low prices for all goods and services procured under public procurement. Negotiations with suppliers of goods and services is often frowned upon, as it suggests 'deal- making'. However, if these enhancements to public procurement are stated in procurement policies and strategies, showing acceptance of such practice by governments, then they can be carried.

I have only seen a policy position at the National Medical Supplies Fund, were 'fair pricing' is held and 'quality, supplier performance' such stringent conditions, are the primary drivers of procurement of essential health commodities for the public sector. I am sure there are many other procuring entities that hold such a position.

So, there needs to be a push for re- education on public procurement practices, to make 'fair pricing' and other positive drivers take hold in public procurement., and in so doing, will help develop and grow the pharmaceutical sector, protect public health, and not be seen as going against public procurement guidance.

Regards,

Bonnie
Bonface Fundafunda PhD., MBA., B.Pharm
BONFACE FUNDAFUNDA <bcfunda@hotmail.com>