Pharmaceutical Prices in the 21st Century
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Zaheer-Ud-Din Babar Editor Pharmaceutical Prices in the 21st Century
Editor Zaheer-Ud-Din Babar Faculty of Medical and Health Sciences University of Auckland Auckland New Zealand ISBN 978-3-319-12168-0 ISBN 978-3-319-12169-7 (ebook) DOI 10.1007/978-3-319-12169-7 Springer Cham Heidelberg New York Dordrecht London Library of Congress Control Number: 2014958090 Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)
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Preface Drug prices impact the population in general; however, the issues related to prices are changing fast in an economically diverse environment where the face of health is changing and technological development is exponential. In low- and middleincome countries, the price of medicine is the single most important factor determining availability and affordability. In high-income countries, where medicine reimbursement systems are often in place, the price may have less impact on affordability for consumers; however, drug prices are important for governments, for insurance companies, and for drug buying agencies. This book provides a detailed account of international drug pricing issues through country level case studies from around the globe. Countries range from the United States (USA) to United Arab Emirates (UAE) and from European Union to Canada, Turkey, Ethiopia, India, Egypt, and China, to name a few. Coverage is diverse with a mix of high-, middle-, and low-income economies being represented. The book reports on countries with stable and supportive medicine reimbursement systems such as Australia, New Zealand, and Canada to countries that are much more market driven such as the USA and Malaysia. In addition to a focus on global difference, this book also covers the range of medicine pricing mechanisms including policies based on cost-plus pricing, valuebased pricing, pricing, and innovation in pharmaceutical industry and the countries where compulsory pharmacoeconomic analysis is used for drug reimbursement. We expect this book to be well used and beneficial to a wide stakeholder group including funders and planners, policy makers, pharmaceutical industry, academic institutions, governments, and students of pharmacy, medicine, economics, public policy, public health, and law. Auckland, New Zealand October 2014 Zaheer-Ud-Din Babar vii
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Contents 1 Pharmaceutical Pricing Policies in Australia... 1 Agnes Isabelle Vitry, Loc Thai, and Elizabeth E. Roughead 2 Drug Pricing in Canada... 25 Joel Lexchin 3 Pharmaceutical Pricing Policies in China... 43 Yu Fang 4 Pharmaceutical Pricing in Egypt... 59 Heba Wanis 5 Pharmaceutical Pricing in Ethiopia... 79 Eskinder Eshetu Ali, Anwarul-Hassan Gilani, and Teferi Gedif 6 Drug Prices in Finland... 93 Katja M. Hakkarainen, Akseli Kivioja, and Leena K. Saastamoinen 7 Pharmaceutical Prices in India... 113 Sudip Chaudhuri 8 Pharmaceutical Pricing Policies in Italy... 131 Claudio Jommi and Paola Minghetti 9 Pharmaceutical Pricing Policies in South Korea... 151 Iyn-Hyang Lee and Karen Bloor 10 Pharmaceutical Pricing in Malaysia... 171 Mohamed Azmi Hassali, Ching Siang Tan, Zhi Yen Wong, Fahad Saleem, and Alian A. Alrasheedy 11 Pharmaceutical Pricing in New Zealand... 189 Rajan Ragupathy, Kate Kilpatrick, and Zaheer-Ud-Din Babar 12 Pharmaceutical Pricing Policies in Norway and Sweden... 209 Helle Håkonsen and Karolina Andersson Sundell ix
x Contents 13 Pharmaceutical Pricing Policies in Qatar... 229 Mohamed Izham Mohamed Ibrahim 14 Pharmaceutical Pricing in South Africa... 251 Andy Gray and Fatima Suleman 15 Politics, Reforms, and Regulation of Pharma Prices and Expenditures in Turkey over the 2000s... 267 Ipek Eren Vural 16 Pharmaceutical Pricing Policies in the Gulf Countries Council (GCC) and the United Arab Emirates (UAE)... 297 Ranya Shaban Ibrahim Hasan and Charon Lessing 17 The Healthcare System and Pharmaceutical Prices in United States... 309 Albert I. Wertheimer and Ming-Yi Huang 18 Pharmaceutical Pricing Policies in Vietnam... 321 Tuan Anh Nguyen and Elizabeth E. Roughead 19 Pharmaceutical Pricing in Europe... 343 Sabine Vogler and Jaana E. Martikainen 20 UK Health Technology Assessment and Value Based Pricing... 371 Emma E. Morrison and David J. Webb 21 Drug Prices and Incentives to Innovation by the Pharmaceutical Industry... 389 Rosella Levaggi and Paolo Pertile 22 The Pharmaceutical Policy Environment and Pharmaceutical Pricing Policies... 403 Christine Y. Lu