Drug Prices Continue To Fall
BMI Core View : Governments will increasingly impose price controls on pharmaceuticals. Drugmakers have generally charged what the market will bear in developed and emerging markets. High prices were previously accepted by patients and national health services because it was difficult to equate monetary cost with clinical benefit. With the advent of health economics, coupled with increasing budget deficits, there will be more caps on medicine expenditure, especially on essential drugs.
Highlighting the French government's focus on containing healthcare costs, data published by the National Institute of Statistics and Economic Studies (INSEE) shows that between 1990 and 2013, consumer prices for all products increased by 48%, while the price of medicines fell by 15%. Placing pressure on the revenue streams of prescription drugmakers selling their products in France, in the same time period, the retail prices of reimbursed drugs fell by 32%, while the retail prices of non-reimbursed drugs more than doubled (155%). This can be attributed to price cuts on medicines as well as an increased consumption of lower value generic medicines over more costly patented medicines.
Consumer price index data for 2013 published by Eurostat also highlights the French government's 'success' in controlling pharmaceutical prices, which experienced a decline, while the harmonised index of consumer prices shows that the prices for 'All Items' stayed stable over the period. Highlighting ongoing price pressures for drugmakers in France, pharmaceutical prices continued to decline during the first five months of 2014.
|Reimbursed Medicines Fall In Price|
|France: Index Of Consumer Prices & Medicine Prices|