Rethinking Our Pricing Perspective: Do We Realize How Price Components Impact the Affordability of Drugs?

Author(s)

Moderator: Giovanny Leon, MsC, MBA, Price Governance & Negotiations, Novartis Ag, BAsel, BS, Switzerland
Panelists: Panos Kanavos, PhD, Health Policy, The London School of Economics and Political Science, London, UK; Zoltan Kalo, PhD, 1) Semmelweis University; 2) Syreon Research Institute, Budapest, Hungary; Christophe Carbonel, MBA, Price Governance & Negotiations, Novartis AG, Basel, Switzerland

ISSUE: The WHO guideline on country pharmaceutical pricing policies 2020 covers ten pricing policies applied to set, manage, or influence pharmaceutical products' prices. We found that two neglected policies in research, policy discussion and public forum discussion like ISPOR, are: (a) Mark-up regulation across the pharmaceutical supply and distribution chain; and (b) Tax exemptions or tax reductions for prescription pharmaceutical products.

A more comprehensive view of prices is required to address the affordability challenge of pharmaceuticals. A clear understanding of individual price component rules and regulations and a cross-country comparison could help us understand healthcare systems' real impact. How do different countries compare? How are the differences impacting the actual cost of medication to patients and health insurers in different countries?

OVERVIEW: This panel will debate the challenges and opportunities posed by distribution and taxation price component regulations across various countries that regulate how pharmaceutical distribution mark-ups and taxes (e.g., through VAT) are implemented. Using price component simulations based on country-specific rules and price logic, the panel will explore the consequences of the different approaches to distribution and taxation. Giovanny Leon will provide an overview of the current landscape of price components regulation across markets worldwide and moderate the panel discussion by posing some critical questions for the panelists to debate: (a) What best practices exist to ensure the more affordable cost to health systems or patients? (b) Which distribution and/or taxation regulations are unnecessary, impacting the total cost of medicines for healthcare systems and patients, and why? (c) Are there meaningful differences across diverse price ranges? And (d) Should high-budget impact drugs be handled differently? Panos Kanavos will reflect from the perspective of higher-income countries. Zoltán Kaló will adopt a lower-income country perspective. Christophe Carbonel will represent the perspective of the pharmaceutical industry.

Conference/Value in Health Info

2021-11, ISPOR Europe 2021, Copenhagen, Denmark

Code

414

Topic

Health Policy & Regulatory

Explore Related HEOR by Topic


Your browser is out-of-date

ISPOR recommends that you update your browser for more security, speed and the best experience on ispor.org. Update my browser now

×