ADP in the newsRegulating drug prices matters – Committed to UHC while strained by NCDs

ADP in the News By Hector Castro On 26 Mar 2019 Read 699

“Imagine if an epidemic threatened to kill 41 million people every year. It’s already happening. This year. Last year. Next year, too. Non-communicable diseases are the world’s biggest killers…” this tweet from Tedros Adhanom Ghebreyesus (Director General of the WHO) in September 2018, serves as an example of the challenges many countries face as they move toward universal health coverage (UHC).

All health systems, regardless their level of income (affluent and less so), face the challenge of managing finite resources to address unlimited demand for services. This is particularly challenging for many low- and middle-income countries (LMICs) where there is still an unfinished agenda to address infectious and neglected tropical diseases. Meanwhile, more affluent health systems are already bearing the substantial burden of NCDs.

Recent research has demonstrated that for an additional US $1.50 per-capita per-year 15 million deaths could be averted, including 8 million incidents of heart disease and 13 million strokes.1 In fact, NCDs, including cardiovascular diseases, cancers, strokes, chronic respiratory conditions, and diabetes, contribute to 70% of worldwide mortality.2 As of 2015, an estimated 40 million deaths have been attributed to NCDs, an increase from 31 million in 2000.3

Although pharmaceutical manufacturers have made advancements in drug research and development, the price of many drugs remains out of reach for patients residing in LMICs; moreover, many NCD treatment regimens are needed throughout the lifespan of patients regardless of their ability to pay for them, suggesting the need for long-term policies to lower costs and deliver greater financial protections for patients.

Total health spending on medicines can vary wildly—from 10% in heavily regulated markets to more than 80% in countries with limited bargaining power—while out-of-pocket expenses may represent around 5% of a household’s burden in OECD countries, but more than 70% in many other settings.4

UHC means everyone can use the promotive, preventive, curative, rehabilitative, and palliative health services they need, of sufficient quality to be effective, while ensuring that accessing these services does not expose them to financial hardship. In order to fulfill this promise, health systems need to be wiser when allocating scarce resources. This is why drug price regulation matters!

Regulating prices of medicines could take many forms including, international or internal reference pricing; value-based pricing or cost-plus pricing. Other indirect mechanisms should also be considered (i.e. policies on duties and taxes, markups, competition, public procurement/tendering, centralized negotiations and generic substitution) to improve the efficiency of health systems.

Progress is possible! Just last October, UN Member States adopted two health-related declarations, one of them aimed at beating NCDs, thus it seems they finally had reached the global policy agendas. Now it is our time to sharpen our tools  to support the communities we serve in order to help them cope with a double challenge: reaching UHC while bearing in mind NCDs.

MSH, in collaboration with UNDP and the Access and Delivery Partnership (ADP),  is holding an international workshop on the strategic pricing of medicines. For more information, please contact me at hcastro@msh.org or follow me on social media at @HectorECastroJ.

Link to resource: World Health Organization (2015) WHO Guideline on Country Pharmaceutical Pricing Policies – PDF, 134pp


1 Bertram MY, Sweeny K, Lauer JA, Chisholm D, Sheehan P, Rasmussen B, et al (2018). Investing in Non-Communicable Diseases: An Estimation of the Return on Investment for Prevention and Treatment services. Lancet. 391: 2071-2078. doi:10/1016/S0140-6736(18)30665-2.
2 The Institute for Health Metrics and Evaluation (IHME). Global Burden of Disease, 2017
3 WHO (2015a). Non-Communicable Disease Fact Sheet, accessed 29 July 2018.
4 Peterson-Kaiser Health Systems Tracker What are the recent and forecasted trends in prescription drug spending?


This news story was originally published by LEADERNET