The worldwide movement toward drug pricing transparency
U.S. moves toward reducing federal spending on drugs have captured headlines, but Rx pricing is currently being scrutinized around the world (1,020 words, 5 minutes)
Governments and healthcare regulators worldwide are intensifying their efforts to bring more transparency to the pricing of prescription medications. These initiatives aim to ensure that pharmaceutical pricing remains fair, affordable, and sustainable. The journal Hospital Pharmacy notes that drug pricing transparency may also improve patient autonomy and help patients better understand the cost and benefits of medications.
The National Academy for State Health Policy writes that several states have implemented prescription drug price transparency programs in the United States, which mandate that pharmaceutical manufacturers report detailed information about the pricing and costs of the therapies they produce.
For example, CNBC reported that the Trump administration introduced a rule that required pharmaceutical companies to include the list prices of their prescription drugs in television advertisements. However, the rule was blocked in 2019 by a United States District Court judge for the District of Columbia, Amit P. Mehta. More recently, the Biden administration has proposed a plan to lower drug prices in federal U.S. formularies, including Medicare and Medicaid. According to a press release on the White House website, the move is designed to reduce healthcare costs and enhance accessibility to therapies for Americans.
In Canada, the pursuit of drug pricing transparency led to the establishing of the Patented Medicines Prices Review Board (PMPRB) in 1987. This regulatory entity’s core mission is to protect and inform Canadian consumers by regulating the prices of patented medicines sold in Canada and to report on pharmaceutical trends. The PMPRB reviews and regulates the prices of patented drugs, aiming to keep prices affordable and in line with international standards. Additionally, the Pan-Canadian Pharmaceutical Alliance negotiates drug prices on behalf of provinces and territories.
The European Medicines Agency offers a database where consumers can access information about authorized medicines, including prices. Several countries have launched their own drug pricing transparency initiatives in the Latin American and Caribbean regions. For example, Argentina established the “Precios Cuidados” program, which regulates the prices of essential goods, including medications, seeking affordability and transparency for consumers.
In Africa, access to affordable medications is a vital concern. Countries on the continent are implementing strategies to enhance transparency in drug pricing. In South Africa, the Medicine Pricing Registry collects and publishes information on the prices of drugs, promoting transparency and helping to control healthcare costs.
Similarly, governments across Asia are working towards increased pricing transparency. Trinity Life Sciences reports that Japan introduced a price disclosure system, where pharmaceutical companies must disclose the prices at which they sell their drugs to different buyers, promoting transparency. Other countries have also launched initiatives for drug pricing transparency, such as India’s Drug Price Control Order and South Korea’s Health Insurance Review and Assessment Service.
Additional sources:
https://ncpa.org/sites/default/files/2021-12/hr-6101-one-pager.pdf
https://www.ama-assn.org/system/files/issue-brief-improving-drug-price-cost-transparency.pdf
THIS WEEK 11/14/23
The U.S. FDA approved Takeda’s oral fruquintinib (Fruzaqla) for treating adult patients with metastatic colorectal cancer who have been previously treated with fluoropyrimidine, oxaliplatin, and irinotecan-based chemotherapy.
Zydus Lifesciences Limited announced the U.S. FDA approved its New Drug Application for the company’s oral sitagliptin and metformin hydrochloride (Zituvimet) for treating type 2 diabetes mellitus in adults.
The FDA approved Eli Lilly’s injectable tirzepatide (Zepbound) for treatment of adults with obesity, or patients who have weight-related medical conditions such as hypertension, dyslipidemia, type 2 diabetes mellitus, obstructive sleep apnea or cardiovascular disease.
Ipsen and Medison Pharma announced that Health Canada approved odevixibat (Bylvay) for treating pruritus due to Progressive Familial Intrahepatic Cholestasis.
LISTEN UP
In season 11 of the NPC Podcast, Dave Cann, Senior Director of Business Development of Inizio Engage, gives insights into the ‘new beginning’ for Ashfield, harnessing the entrepreneurial spirit in leadership roles and adapting to change in your career. Hear him in conversation with podcast hosts Mitch Shannon, Jim Shea and Mark McElwain.
HEALTHBIZ REWIND
This feature of NPC Healthbiz Weekly looks back at some of the most insightful moments from previous NPC Podcast episodes. In Healthbiz Rewind, you’ll read bold life sci predictions made during the renowned “Prognostication Korner” segment of the NPC Podcast.
Brenda Irwin
Managing General Partner
Relentless Venture Fund
Vancouver
Season 04, episode 02
Listen to this episode here
What has changed in life sciences healthcare investment? Will we see more money going into healthcare and Life Sciences? (This episode was recorded in May 2021)
Absolutely. The difference is that entrepreneurs couldn’t find money before. Even three years ago, finding money was super challenging for health tech companies. The reason we are growing and launching a much bigger fund is liquidity. Around 20 years ago, the markets dried up. At Relentless, like any other healthcare fund, you get your money from limited partners, primarily institutional partners or institutional limited partners—they have to see the potential for liquidity. Liquidity comes either through MNA or through the public markets. The public markets dried up in the early 2000s, with many clinical failures. So the institutions ran away, and biotech was getting zero love.
The difference is that in the last couple of years, particularly the last 18 months in Canada, there have been wild successes, clinical success, and public offerings, but also companies that have been public. The valuations have increased exponentially, which translates to returns to limited partners, and the cycle begins in terms of interest rate. They want to get into the market. For digital health and health tech, where we’re invested, the IPOs, the mega deals, and the fact that the tech giants are coming into digital health are all very good proxies for where we are and where we’re headed. It’s a very exciting time to be in health tech, and I don’t have to be as scrappy as I was three years ago to get people’s interest.
Just eight days away: It’s the 17th Annual National Pharmaceutical Congress on Wednesday, November 22, 2023
The 17th Annual National Pharmaceutical Congress will be held on November 22, 2023, at the Mississauga Convention Centre. As Canada’s most significant stage for leaders in the pharmaceutical industry, the Congress presents industry reflections, ideas, and innovations. The Congress is attended by more than 200 delegates annually and is an opportunity to learn, reflect, and network with the industry’s most prominent thought leaders and visionaries. Register now and save 50% off the regular registration fee as a reader of NPC Healthbiz Weekly.
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