DIFFERENTIAL PHARMACEUTICAL PRICING- ARE PRICES CO-RELATED WITH GDP?
Author(s)
Iacobucci W1, Mehta P2, Marinoni G2, Ando G2, Dall T1
1IHS, Washington, DC, USA, 2IHS, London, UK
Presentation Documents
OBJECTIVES To assess co-relation of GDP per capita (purchasing power parity) on pharmaceutical pricing METHODS Based on empirical research, 18 drugs were selected and grouped into seven therapeutic categories: (1) Blood Based Disorders; (2) Cardiovascular Disorders; (3) Inflammatory Disorders; (4) Oncology; (5) Respiratory Disorders (only fluticasone); (6) Diabetes; and (7) Viral Diseases Price per unit (mg, IU, and U; at ex-factory level) data was collected from IHS PharmOnline International (POLI) Database across 41 countries (Australia, Austria, Belgium, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Morocco, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, and United States) from 2007 t0 2012. Prices were converted into Euros on a yearly exchange rate basis and adjusted for inflation. Additionally, GDP data was collected from World Bank for the same period. We fit the regression equation for the log price per unit (dependent variable), log GDP per capita, generic status, strength, percentage of population aged 65 and above, an indicator for the US market, and year (independent variables) as follows: Y (Price per Unit) = α + ∑ βi * Xi + ε RESULTS eltrombopag (-0.977+.131, n=160), filgrastim (-4.08+.347, n=1420), etanercept (-.253+.227, n=870), adalimumab (2.52+.128, n=306), cetuximab (-.325+.166, n=203), pazopanib (-3.78+.164, n=111), fluticasone (.559+.559, n=108), sitagliptin (-4.00+.215, n=413), Stocrin (-12.75+.803, n=556) and Truvada (-5.08+.157, n=168) had statistically significant GDP (PPP) coefficients at the 0.01 level, whereas Tasigna, bevacizumab, dabigatran, rivaroxaban, exenatide, liraglutide, saxagliptin, and interferon alpha were not significant at 0.01 level. CONCLUSIONS Our model finds varying degrees of co-relation between GDP per capita (PPP) and price per unit. Nonetheless, sitagliptin, cetuximab, filgrastim, Stocrin, Truvada, and adalimumab exhibited highest co-relation; they are thus most differentially priced.
Conference/Value in Health Info
2014-11, ISPOR Europe 2014, Amsterdam, The Netherlands
Value in Health, Vol. 17, No. 7 (November 2014)
Code
PCN237
Topic
Health Policy & Regulatory, Health Service Delivery & Process of Care
Topic Subcategory
Health Care Research, Health Disparities & Equity
Disease
Cardiovascular Disorders, Diabetes/Endocrine/Metabolic Disorders, Oncology, Systemic Disorders/Conditions