INTRODUCTION

Following the publication of several decrees and decisions on the official gazette setting the reference rates used as a basis for the reimbursement of drugs and the procedures for their implementation, by the Ministry of Labor, Employment and Social Security, industrials reacted by adjusting the price of certain drugs (mostly chronic diseases drugs). As a result, 85 medicines were lowered in price at the end of 2014.

OBJECTIVES

: The purpose of the present study is to evaluate the the impact of Algeria's retail drug price reduction on expenditures of the Ministry of Public Health, the Social Security and Pharmaceutical industry.

METHODS

: Analyses included IMS data of annual drug prices in Algeria from 2013-2017. We compared annual sales in value and quantity before and after the price reduction for the 85 drugs, accounting for inflation resulting from generic policy in the year before the price reduction took effect.

RESULTS

: While the quantities sold still increased, there was a decreased rate of revenue immediately after the drug price reduction in almost all therapeutic classes of 85 drugs. Antidiabetic drugs did not exhibit the expected decrease in revenue trend; mainly cardiology, anti-inflammatory and psychiatric drugs. The medicine drug market took a hit in 2015 despite a slight increase in quantities. Available data showed decreased expenditures in 2015 for the Social Security and Ministry of Public Health.

CONCLUSIONS

: In the years following the drug price reduction, the rate of revenue decreased in the drug market. This research provides evidence to support the effectiveness of the drug price policy in Algeria in controlling expenditure increases for medication. However, after 2 years since this policy was enacted, the drug market and drug related expenditures rose again. Additional research must be conducted in other countries to confirm the observed outcomes.