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<div class="gmail_quote">From: <b class="gmail_sendername">Meghana Bahar</b> <span dir="ltr"><a href="mailto:meghana@haiap.org">meghana@haiap.org</a></span><br><font size="3"><font face="Times New Roman"> <br><span style="FONT-FAMILY: 'Helvetica LT Std'">Not everyone has access to medicines and not all medicines are available in the public sector. Medical reimbursement schemes are too expensive for most patients. What are the consequences? Pay for medicines at their full price in the private sector, purchase just a fraction of the treatment course, or worse, be untreated. Sickness should never result in making such choices. For the millions of people living in the impoverished regions of the world, medicines cost the sky. </span> </font></font></div>
<div class="gmail_quote">
<p><font size="3"><font face="Times New Roman"><span style="FONT-FAMILY: 'Helvetica LT Std'">To illustrate the issue of high prices, Health Action International (HAI) undertook a one day global ‘snapshot’ of the price of ciprofloxacin, a commonly-used off-patent antibiotic. The ‘snapshots’ indicate the full retail price a patient pays at a pharmacy on that day.</span> <span style="FONT-FAMILY: 'Helvetica LT Std'">Data were collected from 93 countries. Individuals from HAI’s extended network collected the prices for both the originator brand product manufactured by Bayer and the lowest priced generic equivalent in the pharmacy. An interactive map is on HAI’s website (</span></font></font><a href="http://www.haiweb.org/medicineprices" target="_blank"><span style="FONT-FAMILY: 'Helvetica LT Std'"><font face="Times New Roman" color="#0000ff" size="3">www.haiweb.org/medicineprices</font></span></a><span style="FONT-FAMILY: 'Helvetica LT Std'"><font face="Times New Roman" size="3">), indicating the price variations between the Bayer originator product and the generic product, for a 7 day treatment course (14 tablets) in US$ using the exchange rate of 30 November 2009. </font></span><font size="3"><font face="Times New Roman"> </font></font></p>
<p><font size="3"><font face="Times New Roman"><span style="FONT-FAMILY: 'Helvetica LT Std'">In South East Asia, on average both the originator brand price (US$17.46) and the price of the lowest priced generic (US$1.19) were substantially less than prices in other regions. For example the originator brand was 16 times the price of the lowest priced generic (as found in Africa). A course of the originator brand varied in price from about US$57 in Malaysia to about US$2 in Nepal and India. Generic prices ranged from about US$32 in Australia to less than US$1 in Myanmar (US$0.42), Sri Lanka (US$0.57), Indonesia (US$0.66), Viet Nam (US$0.66) and Lao PDR (US$0.59). Indonesia had the largest brand premium with the originator brand priced at over 47 times the price of the lowest priced generic. By contrast, in India the originator brand was only 30% more than the generic. </span> </font></font></p>
<p><font size="3"><font face="Times New Roman"><span style="FONT-FAMILY: 'Helvetica LT Std'">The variation in price across countries within each income level was greater for the originator brand compared to the generics. For example, in lower middle-income countries the originator brand price varied from US$2 to US$131 whereas generics ranged from less than US$1 to US$27. Generic ciprofloxacin is available at much lower prices than the originator brand product. In many countries, the price of the generic versions could be much lower and more affordable.</span> </font></font></p>
<p><font size="3"><font face="Times New Roman"><span style="FONT-FAMILY: 'Helvetica LT Std'">To improve treatment affordability, interventions are needed to <b>increase the use of low priced generics</b>. Governments need to ensure only good quality medicines are on the market and mandate generic substitution and create incentives for the dispensing of low priced generics. Sickness cure should not cost the sky.</span> </font></font></p>
<p><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'"><font face="Times New Roman">Please refer to HAI website to see the interactive map reporting the price data, and the analysis of results and recommendations: </font></span></i><a href="http://www.haiweb.org/medicineprices" target="_blank"><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'"><font face="Times New Roman" color="#0000ff">http://www.haiweb.org/medicineprices</font></span></i></a><font face="Times New Roman"><i><u><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'">. </span></u></i><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'">For further information, contact Marg Ewen at HAI Global (telephone: +31206833684 or e-mail: </span></i></font><a href="mailto:medicineprices@haiweb.org" target="_blank"><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'"><font face="Times New Roman" color="#0000ff">medicineprices@haiweb.org</font></span></i></a><font face="Times New Roman"><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Helvetica LT Std'">) or Jinani Jayasekera at HAI Asia-Pacific (telephone: </span></i></font></p>
<p style="TEXT-ALIGN: center" align="center"><font size="3"><b><span style="FONT-FAMILY: Arial">Being sick and needing medicines is a costly misfortune in many countries</span></b></font></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When you are sick the price of a medicine matters – especially if you are one of the millions of people living in poverty in many countries around the world. Medicines are inaccessible for many people; they are either unavailable in the public sector, or patients cannot afford to be covered by a medical reimbursement scheme. People who face this dilemma are either forced to purchase medicines at full price in the private sector, go without, or buy a partial course of treatment.</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">To illustrate the issue of high prices, Health Action International (HAI) undertook a one day global ‘snapshot’ of the price of ciprofloxacin. Ciprofloxacin is a broad spectrum antibacterial used to treat various common infections, with a usual adult dose of 250-750mg twice daily for up to 14 days. The medicine has been off-patent in the US, Europe and elsewhere for at least than 5 years and numerous generic versions are manufactured throughout the world. </span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Individuals from HAI’s extended network collected the price which a patient would have to pay if they paid the full price (as opposed to a co-payment amount where reimbursement systems exist) for ciprofloxacin 500mg tablets in their nearest private retail pharmacy on 30 November 2009. Prices were collected for both the originator brand product manufactured by Bayer and the lowest priced generic equivalent in the pharmacy. </span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Below is shown the price for a 7 day treatment course (14 tablets) in US$ using the exchange rate of 30 November 2009 for the Bayer originator product in each location where data was collected - the larger the ‘bubble’, the higher the price. An interactive form of this map is on HAI’s website (</span><a href="http://www.haiweb.org/medicineprices" target="_blank"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><font color="#0000ff">www.haiweb.org/medicineprices</font></span></a><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">), where prices of the lowest priced generics can also be viewed. These prices should not be considered representative of the situation in a given country, since great price variation exists within some countries, and they only report the final stage of the supply chain. However, they are indicative of what patients would have to pay, if paying the full retail price, in those pharmacies on that day. </span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The price a patient would pay for a course of the originator brand product in the private sector was highest in Colombia at more than 200 times the price in 5 Asian countries where the price of generics was lowest - a difference of almost 20,000%. </span></p>
<p><a name="0.1_graphic09"></a><font face="Times New Roman" size="3"> </font><a name="0.1__MailAutoSig"></a><b><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Prices in the South East Asia region are much lower than in other regions </span></i></b></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As shown in the chart, the average price a patient would pay for a course of treatment with ciprofloxacin varies greatly across regions. In the South East Asia region, both the originator brand price (US$17.46) and the price of the lowest priced generic (US$1.19) were substantially less than prices in other regions.</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In the South East Asia region, the originator brand was 16 times the price of the lowest priced generic (as found in Africa). In other regions, the originator brand was about 11-14 times the price of the lowest priced generic.</span><font face="Times New Roman" size="3"> <br>
<br> </font><a name="0.1_graphic0A"></a><b><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Prices vary greatly within the region</span></i></b></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Prices in countries within the region were also highly variable; the chart shows average prices for the originator brand and lowest price generics in countries in South East Asia and the Western Pacific region. The price for a course of treatment varied from US$57.12 in Malaysia (originator brand) to US$0.42 in Myanmar (generic).</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A course of the originator brand varied in price from about US$57 in Malaysia to about US$2 in Nepal and India. Generic prices ranged from about US$32 in Australia to less than US1 in Myanmar (US$0.42), Sri Lanka (US$0.57), Indonesia (US$0.66), Viet Nam (US$0.66) and Lao PDR (US$0.59). Indonesia had the largest brand premium with the originator brand priced at over 47 times the price of the lowest priced generic<sup>vii</sup>. By contrast, in India the originator brand was only 30% more than the generic. </span></p>
<p><a name="0.1_graphic0B"></a><b><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Inequitable pricing –originator brand price is unrelated to the income level of the country</span></i></b></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The chart below shows the price a patient would pay for a course of treatment in countries grouped by World Bank income level. For the originator brand (OB), the average price (indicated in red) showed very little variation across the different income levels. A different picture is seen for lowest priced generics (LPG) where the average price (also indicated in red) decreased as the wealth of the country decreased (from about US$ 20 in high income countries to about US$ 3 in low income countries).</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The variation in price across countries within each income level was greater for the originator brand compared to the generics. For example, in lower middle-income countries the originator brand price varied from US$ 2 to US$ 131 whereas generics ranged from less than US$ 1 to US$ 27. </span></p>
<p><a name="0.1_graphic0C"></a><b><i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Purchasing power: ciprofloxacin can be considered as expensive in many countries</span></i></b></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Since theoretically currencies should trade at the rate that would make the price of goods the same in each country, purchasing power is a good indicator of how expensive goods are. Where the price in terms of purchasing-power parity is greater than the price at market exchange rates, the goods can be considered as expensive in that country. Likewise where the price in terms of purchasing-power parity is less than the price at market exchange rates, the goods can be considered to be low priced.</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The price for the originator brand in Kyrgyzstan was extremely high at US$ 248 at purchasing-power parity (and a much lower price at market exchange rates), whereas it was low in France at only US$ 28 (with a similar price at market rates), illustrating that in some countries the prices are too high.</span></p>
<p><a name="0.1_graphic0D"></a><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Similarly for generics, the prices at purchasing-power parity were expensive in a number of countries. In Guatemala, the price of a course of a generic was high, at US$ 51 at purchasing power parity (and U$28 at market exchange rates), while the reverse applied in Switzerland.</span></p>
<p><a name="0.1_graphic0E"></a><font face="Times New Roman" size="3"> </font><b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Conclusions</span></b></p>
<ul type="disc">
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Generic ciprofloxacin is available at much lower prices than the originator brand product</span><font size="3"><font face="Times New Roman"> </font></font></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In many countries, the price of the generic versions could be much lower and more affordable</span><font size="3"><font face="Times New Roman"> </font></font></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The average price for the Bayer originator brand product was consistent across countries of different income levels </span></li>
</ul>
<p><b><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Recommendations</span></b></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">To improve treatment affordability, interventions are needed to <b>increase the use of low priced generics</b>. Governments need to:</span></p>
<ul type="disc">
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Ensure only good quality medicines are on the market</span><font size="3"><font face="Times New Roman"> </font></font></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Mandate generic substitution and create incentives for the dispensing of low priced generics </span></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Ensure the public has easy access to information about the price they should pay for a medicine </span></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Encourage active involvement of consumer and health professional organisations in education initiatives about the use of generic medicines</span><font size="3"><font face="Times New Roman"> </font></font></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Remove taxes and duties on medicines, and regulate margins in the supply chain</span><font size="3"><font face="Times New Roman"> </font></font></li>
</ul>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">For patients who cannot afford even the lowest priced generics purchased in the private sector, governments must provide essential medicines free of charge in the public sector, and ensure adequate financing and efficient supply systems to prevent stock-outs.</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">This snapshot of the price of ciprofloxacin is useful in illustrating prices across the world. However, governments need to continuously monitor prices, as well as availability and affordability, in various sectors and regions within their country. More important is to act on the findings to develop policies and strategies to improve medicine affordability and availability, monitor the outcomes and adapt to the continuously changing environment. </span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">WHO/HAI has a tool available to survey medicine prices and availability, and is developing in-depth reviews on pricing policy options (see </span><a href="http://www.haiweb.org/medicineprices" target="_blank"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><font color="#0000ff">www.haiweb.org/medicineprices</font></span></a><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">).</span></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"></span> </p></div>