A Comparison of Asian and global pharmaceutical prices using an EKS method

Objectives: The study aimed to determine the differences between Asian and Global Pharmaceutical prices. Methods: The indices were developed using the Fisher Elteto, Koves, Szulc (EKS) method. The EKS method is widely used by the Organisation for Economic Co-operation and Development (OECD) but has not yet been applied to pharmaceutical prices. IMS MIDAS data was used to estimate prices and sales volumes. In order to construct the indices, the products needed to be defined as like. The definition of like in this study was based on molecules which are deemed to deliver equivalent health outcomes. The price indices were developed for countries in World Health Organisation (WHO) regions. The analysis compares prices across 56 countries over the period from 2005 to 2011 and included 42 molecules which were sold in each country for the period. The countries were organised into the WHO regions. In total, around 1,000,000 unique national, product brands were accessed for the analysis. Results: Pharmaceutical price indices vary substantially between regions. The Asian regions recorded the lowest prices. The indices were as follows: South-East Asian Region D 0.21; South-East Asian Region B 0.31; European Region B 0.37 Western Pacific Region A; 0.44 European Region A 0.45; African Region E 0.46; European Region C 0.49; Western Pacific Region B 0.51; Eastern Mediterranean Region D; 0.54; Region of the Americas D 0.87; Region of the Americas B 0.90; Eastern Mediterranean Region B 1.11. Conclusions: This is the largest exercise ever undertaken in comparing international pharmaceutical prices. It also employs a more robust method than previous studies. The analysis shows Asian region pharmaceutical prices are the lowest in the world.