A Systematic Review of Pharmaceutical Pricing Policies in Developing Countries

Nada Abdel Rida, Mohamed Izham Mohamed Ibrahim, Zaheer-Ud-Din Babar, Yaw Owusu

Research output: Contribution to journalReview article

1 Citation (Scopus)

Abstract

Objective:

A systematic review was conducted to summarize government strategies aimed at controlling pharmaceutical prices in developing countries and their effects on relevant outcomes, and to qualitatively analyse eligible studies of pricing policy and their impact on expenditure and medicine prices.

Methods:
Several databases, grey literature and Google Scholar were systematically searched, and reference lists of relevant studies were screened for full-text studies published in Arabic or English between January 2000 and March 2016. Studies describing government pharmaceutical pricing strategies in developing countries and their effect were considered eligible.

Key findings:
Twenty-one studies were included in the explorative synthesis: sixteen covered Asian countries, three covered African countries and three from Latin and South America. Identified policies covered disease-specific and essential medicines with some countries extending it to all medicine classes. Markup regulation (n = 7) was the most commonly used, followed by external reference pricing (n = 6) and cost-plus (n = 5), promotion of generics use (n = 3), while tax exemptions were the least used policy (n = 2). Six of the twenty-one studies were included in the qualitative synthesis. Markup regulation was similarly predominant in this latter synthesis. Although the implemented policies showed a measure of success, medicine prices appeared to be influenced by poor legislative framework, lack of pre-/post-implementation activities and noncompliance by various stakeholders.

Conclusion:
Various internationally recognized pharmaceutical pricing policies are implemented in developing countries; however, these policies are not optimally adopted. Policymakers should tailor the pharmaceutical pricing policy to the nation taking into consideration macro- and microeconomic factors.
Original languageEnglish
Pages (from-to)213-226
Number of pages14
JournalJournal of Pharmaceutical Health Services Research
Volume8
Issue number4
Early online date14 Aug 2017
DOIs
Publication statusPublished - Dec 2017

Fingerprint

Drug and Narcotic Control
Developing Countries
Costs and Cost Analysis
Medicine
Tax Exemption
Economics
Literature
Latin America
South America
Health Expenditures
Pharmaceutical Preparations
Systematic review
Pharmaceutical pricing
Developing countries
Pricing policy
Databases
Markup
Government

Cite this

Abdel Rida, Nada ; Mohamed Ibrahim, Mohamed Izham ; Babar, Zaheer-Ud-Din ; Owusu, Yaw. / A Systematic Review of Pharmaceutical Pricing Policies in Developing Countries. In: Journal of Pharmaceutical Health Services Research. 2017 ; Vol. 8, No. 4. pp. 213-226.
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A Systematic Review of Pharmaceutical Pricing Policies in Developing Countries. / Abdel Rida, Nada; Mohamed Ibrahim, Mohamed Izham; Babar, Zaheer-Ud-Din; Owusu, Yaw.

In: Journal of Pharmaceutical Health Services Research, Vol. 8, No. 4, 12.2017, p. 213-226.

Research output: Contribution to journalReview article

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T1 - A Systematic Review of Pharmaceutical Pricing Policies in Developing Countries

AU - Abdel Rida, Nada

AU - Mohamed Ibrahim, Mohamed Izham

AU - Babar, Zaheer-Ud-Din

AU - Owusu, Yaw

N1 - No AAM on ePrints; author does not have it. Not OA compliant.

PY - 2017/12

Y1 - 2017/12

N2 - Objective:A systematic review was conducted to summarize government strategies aimed at controlling pharmaceutical prices in developing countries and their effects on relevant outcomes, and to qualitatively analyse eligible studies of pricing policy and their impact on expenditure and medicine prices.Methods:Several databases, grey literature and Google Scholar were systematically searched, and reference lists of relevant studies were screened for full-text studies published in Arabic or English between January 2000 and March 2016. Studies describing government pharmaceutical pricing strategies in developing countries and their effect were considered eligible.Key findings:Twenty-one studies were included in the explorative synthesis: sixteen covered Asian countries, three covered African countries and three from Latin and South America. Identified policies covered disease-specific and essential medicines with some countries extending it to all medicine classes. Markup regulation (n = 7) was the most commonly used, followed by external reference pricing (n = 6) and cost-plus (n = 5), promotion of generics use (n = 3), while tax exemptions were the least used policy (n = 2). Six of the twenty-one studies were included in the qualitative synthesis. Markup regulation was similarly predominant in this latter synthesis. Although the implemented policies showed a measure of success, medicine prices appeared to be influenced by poor legislative framework, lack of pre-/post-implementation activities and noncompliance by various stakeholders.Conclusion:Various internationally recognized pharmaceutical pricing policies are implemented in developing countries; however, these policies are not optimally adopted. Policymakers should tailor the pharmaceutical pricing policy to the nation taking into consideration macro- and microeconomic factors.

AB - Objective:A systematic review was conducted to summarize government strategies aimed at controlling pharmaceutical prices in developing countries and their effects on relevant outcomes, and to qualitatively analyse eligible studies of pricing policy and their impact on expenditure and medicine prices.Methods:Several databases, grey literature and Google Scholar were systematically searched, and reference lists of relevant studies were screened for full-text studies published in Arabic or English between January 2000 and March 2016. Studies describing government pharmaceutical pricing strategies in developing countries and their effect were considered eligible.Key findings:Twenty-one studies were included in the explorative synthesis: sixteen covered Asian countries, three covered African countries and three from Latin and South America. Identified policies covered disease-specific and essential medicines with some countries extending it to all medicine classes. Markup regulation (n = 7) was the most commonly used, followed by external reference pricing (n = 6) and cost-plus (n = 5), promotion of generics use (n = 3), while tax exemptions were the least used policy (n = 2). Six of the twenty-one studies were included in the qualitative synthesis. Markup regulation was similarly predominant in this latter synthesis. Although the implemented policies showed a measure of success, medicine prices appeared to be influenced by poor legislative framework, lack of pre-/post-implementation activities and noncompliance by various stakeholders.Conclusion:Various internationally recognized pharmaceutical pricing policies are implemented in developing countries; however, these policies are not optimally adopted. Policymakers should tailor the pharmaceutical pricing policy to the nation taking into consideration macro- and microeconomic factors.

KW - developing countries

KW - external price referencing

KW - government strategies

KW - price containment

KW - pricing policy

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EP - 226

JO - Journal of Pharmaceutical Health Services Research

JF - Journal of Pharmaceutical Health Services Research

SN - 1759-8885

IS - 4

ER -