Estimation of cost-based prices for injectable medicines in the WHO Essential Medicines List
ObjectivesChallenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of production for medicines in solid oral formulations (ie, capsules or tablets) on the WHO Model List of Essential Medicines (EML). The objec...
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Published in | BMJ open Vol. 9; no. 9; p. e027780 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
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BMJ Publishing Group LTD
01.09.2019
BMJ Publishing Group |
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Abstract | ObjectivesChallenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of production for medicines in solid oral formulations (ie, capsules or tablets) on the WHO Model List of Essential Medicines (EML). The objectives of this analysis were to estimate cost-based prices for injectable medicines on the EML and to compare these to lowest current prices in England, South Africa, and India.DesignData on the cost of active pharmaceutical ingredients (APIs) exported from India were extracted from an online database of customs declarations (www.infodriveindia.com). A formula was designed to use API price data to estimate a cost-based price, by adding the costs of converting API to a finished pharmaceutical product, including the cost of formulation in vials or ampoules, transportation and an average profit margin.ResultsFor injectable formulations on the WHO EML, medicines had prices above the estimated cost-based price in 77% of comparisons in England (median ratio 2.54), and 62% in South Africa (median ratio 1.48), while 85% of medicines in India had prices below estimated cost-based price (median ratio 0.30). 19% of injectable medicines in England, 9% in South Africa, and 5% in India had prices more than 10 times the estimated cost-based price. Medicines that appeared in the top 20 by ratio of lowest current price to estimated cost-based price for more than one country included numerous oncology medicines—irinotecan, leuprorelin, ifosfamide, daunorubicin, filgrastim and mesna—as well as valproic acid and ciclosporin.ConclusionsEstimating manufacturing costs can identify cases in which profit margins for medicines may be set significantly higher than average. |
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AbstractList | OBJECTIVESChallenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of production for medicines in solid oral formulations (ie, capsules or tablets) on the WHO Model List of Essential Medicines (EML). The objectives of this analysis were to estimate cost-based prices for injectable medicines on the EML and to compare these to lowest current prices in England, South Africa, and India. DESIGNData on the cost of active pharmaceutical ingredients (APIs) exported from India were extracted from an online database of customs declarations (www.infodriveindia.com). A formula was designed to use API price data to estimate a cost-based price, by adding the costs of converting API to a finished pharmaceutical product, including the cost of formulation in vials or ampoules, transportation and an average profit margin. RESULTSFor injectable formulations on the WHO EML, medicines had prices above the estimated cost-based price in 77% of comparisons in England (median ratio 2.54), and 62% in South Africa (median ratio 1.48), while 85% of medicines in India had prices below estimated cost-based price (median ratio 0.30). 19% of injectable medicines in England, 9% in South Africa, and 5% in India had prices more than 10 times the estimated cost-based price. Medicines that appeared in the top 20 by ratio of lowest current price to estimated cost-based price for more than one country included numerous oncology medicines-irinotecan, leuprorelin, ifosfamide, daunorubicin, filgrastim and mesna-as well as valproic acid and ciclosporin. CONCLUSIONSEstimating manufacturing costs can identify cases in which profit margins for medicines may be set significantly higher than average. Objectives Challenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of production for medicines in solid oral formulations (ie, capsules or tablets) on the WHO Model List of Essential Medicines (EML). The objectives of this analysis were to estimate cost-based prices for injectable medicines on the EML and to compare these to lowest current prices in England, South Africa, and India. Design Data on the cost of active pharmaceutical ingredients (APIs) exported from India were extracted from an online database of customs declarations ( www.infodriveindia.com ). A formula was designed to use API price data to estimate a cost-based price, by adding the costs of converting API to a finished pharmaceutical product, including the cost of formulation in vials or ampoules, transportation and an average profit margin. Results For injectable formulations on the WHO EML, medicines had prices above the estimated cost-based price in 77% of comparisons in England (median ratio 2.54), and 62% in South Africa (median ratio 1.48), while 85% of medicines in India had prices below estimated cost-based price (median ratio 0.30). 19% of injectable medicines in England, 9% in South Africa, and 5% in India had prices more than 10 times the estimated cost-based price. Medicines that appeared in the top 20 by ratio of lowest current price to estimated cost-based price for more than one country included numerous oncology medicines—irinotecan, leuprorelin, ifosfamide, daunorubicin, filgrastim and mesna—as well as valproic acid and ciclosporin. Conclusions Estimating manufacturing costs can identify cases in which profit margins for medicines may be set significantly higher than average. Challenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of production for medicines in solid oral formulations (ie, capsules or tablets) on the WHO Model List of Essential Medicines (EML). The objectives of this analysis were to estimate cost-based prices for injectable medicines on the EML and to compare these to lowest current prices in England, South Africa, and India. Data on the cost of active pharmaceutical ingredients (APIs) exported from India were extracted from an online database of customs declarations (www.infodriveindia.com). A formula was designed to use API price data to estimate a cost-based price, by adding the costs of converting API to a finished pharmaceutical product, including the cost of formulation in vials or ampoules, transportation and an average profit margin. For injectable formulations on the WHO EML, medicines had prices above the estimated cost-based price in 77% of comparisons in England (median ratio 2.54), and 62% in South Africa (median ratio 1.48), while 85% of medicines in India had prices below estimated cost-based price (median ratio 0.30). 19% of injectable medicines in England, 9% in South Africa, and 5% in India had prices more than 10 times the estimated cost-based price. Medicines that appeared in the top 20 by ratio of lowest current price to estimated cost-based price for more than one country included numerous oncology medicines-irinotecan, leuprorelin, ifosfamide, daunorubicin, filgrastim and mesna-as well as valproic acid and ciclosporin. Estimating manufacturing costs can identify cases in which profit margins for medicines may be set significantly higher than average. |
Author | Barber, Melissa Joy Gotham, Dzintars Hill, Andrew M |
AuthorAffiliation | 1 Independent researcher , Independent , London , UK 2 Harvard T.H. Chan School of Public Health , Harvard University , Boston , Massachusetts , USA 3 University of Liverpool , Liverpool , UK |
AuthorAffiliation_xml | – name: 2 Harvard T.H. Chan School of Public Health , Harvard University , Boston , Massachusetts , USA – name: 1 Independent researcher , Independent , London , UK – name: 3 University of Liverpool , Liverpool , UK |
Author_xml | – sequence: 1 givenname: Dzintars orcidid: 0000-0003-0359-1259 surname: Gotham fullname: Gotham, Dzintars email: dzintarsgotham@gmail.com organization: Independent researcher, Independent, London, UK – sequence: 2 givenname: Melissa Joy surname: Barber fullname: Barber, Melissa Joy email: dzintarsgotham@gmail.com organization: Harvard T.H. Chan School of Public Health, Harvard University, Boston, Massachusetts, USA – sequence: 3 givenname: Andrew M surname: Hill fullname: Hill, Andrew M email: dzintarsgotham@gmail.com organization: University of Liverpool, Liverpool, UK |
BackLink | https://www.ncbi.nlm.nih.gov/pubmed/31575568$$D View this record in MEDLINE/PubMed |
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CitedBy_id | crossref_primary_10_1093_cid_ciac753 crossref_primary_10_1016_j_jval_2021_02_004 crossref_primary_10_1016_S2055_6640_20_30018_2 crossref_primary_10_2139_ssrn_4068270 crossref_primary_10_1093_ofid_ofab581 crossref_primary_10_1097_QAD_0000000000002983 crossref_primary_10_1158_2767_9764_CRC_21_0031 crossref_primary_10_1001_jamanetworkopen_2024_3474 |
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Snippet | ObjectivesChallenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost... Challenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost of... Objectives Challenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost... OBJECTIVESChallenges remain in ensuring universal access to affordable essential medicines. We previously estimated the expected generic prices based on cost... |
SourceID | pubmedcentral proquest crossref pubmed bmj |
SourceType | Open Access Repository Aggregation Database Index Database Publisher |
StartPage | e027780 |
SubjectTerms | Blood products Costs Costs and Cost Analysis Drug dosages Drug Industry - economics Drugs, Essential - economics England Health Economics Hepatitis Humans India Injections - economics Manufacturers Manufacturing Pharmaceutical industry South Africa Wage & price controls |
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Title | Estimation of cost-based prices for injectable medicines in the WHO Essential Medicines List |
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