Understanding the components of pharmaceutical expenditure—overview of pharmaceutical policies influencing expenditure across European countries
Journal Title: Generics and Biosimilars Initiative Journal - Year 2013, Vol 2, Issue 4
Abstract
Aim: To explain the components of pharmaceutical expenditure and illustrate the strengths and limitations of this indicator. In particular, we explore policies applied in European countries that affect the price and volume of medicines. Methodology: This paper is based on a presentation held at the European Drug Utilization Research Group (EuroDURG)/International Society for Pharmacoepidemiology (ISPE) meeting in Antwerp, Belgium on 1 December 2011. The aim is to raise awareness of the limitations of pharmaceutical expenditure and explain how to interpret pharmaceutical expenditure data. Updated pharmaceutical policies in European countries are based on surveys by the WHO Collaborating Centre for Pharmaceutical Pricing and Reimbursement Policies (Vienna, Austria). Results: Pharmaceutical expenditure consists of price and volume components. Prices may be indicated at different levels: key price types are ex-factory price (manufacturer level), pharmacy purchasing price (wholesale), and the pharmacy retail price (pharmacy). Taxes, such as value-added tax, are likely to be added. In the hospital sector, different price types, e.g. official hospital price and actual hospital price, apply. Volume may be expressed in sales units, e.g. standard units; prescriptions, or defined daily doses. Pharmaceutical policies, e.g. reference price system, prescription monitoring, discounts and rebates, influence prices or volume and thus pharmaceutical expenditure. Conclusion: When analysing pharmaceutical expenditure data, our advice is to check which components are included and which markets the data refer to. One particular limitation of total pharmaceutical expenditure data is that they often only cover the out-patient sector.
Authors and Affiliations
Sabine Vogler, Nina Zimmermann, Claudia Habl
Keywords
Related Articles
- EP ID EP354722
- DOI 10.5639/gabij.2013.0204.051
- Views 103
- Downloads 0
Establishment of reference standards in biosimilar studies
When an innovative biological product goes off-patent, biopharmaceutical or biotechnological companies may file an application for regulatory approval of biosimilar products. In practice, however, important information o...
Licensing and prescribing biosimilars in Australia
Some years ago, Australian regulatory authorities decided to follow the path laid down by the European Medicines Agency in adopting a process for approval of biosimilars. This has been a largely successful process, resul...
Top developments in biosimilars during 2013
The past year has been a busy one for the biosimilars industry. Perhaps one of the most important milestones during 2013 was the European approval of the first monoclonal antibody biosimilar [Remsima/Inflectra (inflixima...
Challenges to generic medicines utilization in Yemeni healthcare system
Generic medicines are promoted in many countries as an essential part of the healthcare system. However, in Yemen, there are many challenges to the utilisation of generic medicines. Currently, there is no national level...
The potential of generics policies: more room for exploitation–PPRI Conference Report
Introduction: This Conference Report aims to provide an overview of key results, messages and conclusions of the Pharmaceutical Pricing and Reimbursement Information (PPRI) Conference with regard to generics. Methods: Th...