PHA-Exchange> Equitable Pricing of Newer Essential Medicines

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From: "Ruggiero, Mrs. Ana Lucia (WDC)" <ruglucia at PAHO.ORG>

> Equitable Pricing of Newer Essential Medicines for Developing Countries:
Evidence for the Potential of Different Mechanisms
>
> Cheri Grace
> Research Associate, London Business School, 2003
> Essential Drugs and Medicines Policy (EDM) of the World Health
Organization  (WHO) and  Department for International Development (DFID)
Health Systems Resource  Centre
>
> Available online as PDF file at:
http://www.healthsystemsrc.org/publications/Issues_papers/equitable_pricing_
> essential_med.pdf
>
> "......The study was carried out in support of the wider process of
> developing feasible policy options to increase access to essential
> medicines.
>
> The terms 'differential pricing', or 'equitable pricing' can be defined as
> pricing based on ability to pay.
>
> As it relates to the policy goal of maximizing health impact through
> affordability of medicines, a more accurate term might be 'equity
pricing',
> where countries apply a price structure or pricing policy according to
some
> principle of fairness or equity. In practice this may mean proportionality
> with income per capita, human development index or similar indicators.
>
> The report focuses on the voluntary mechanisms - bulk purchasing and
> competitive tendering; voluntary tiered pricing agreements; and voluntary
> licensing - and on how to more effectively capture advantages from these
> mechanisms. Evidence for the potential impact of other mechanisms,
including
> compulsory licensing; delay in patent protection, as allowed by the Doha
> Declaration; systematic, government imposed patent waivers; and price
> controls has also been analysed.
>
> .....In the final section of the report, each mechanism is analysed
> according to a range of factors, such as impact on price reduction,
possible
> effect on R&D, product and disease scope, impact on the poor,
> predictability, transparency, and sustainability. The mechanisms are
> examined individually as well as in relation to each other......"
>