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Comparative Study
. 2017 Mar 31;17(1):242.
doi: 10.1186/s12913-017-2184-5.

A comparison of generic drug prices in seven European countries: a methodological analysis

Olivier J Wouters  1 , Panos G Kanavos  2
Affiliations
Comparative Study

A comparison of generic drug prices in seven European countries: a methodological analysis

Olivier J Wouters et al. BMC Health Serv Res. .

Abstract

Background: Policymakers and researchers frequently compare the prices of medicines between countries. Such comparisons often serve as barometers of how pricing and reimbursement policies are performing. The aim of this study was to examine methodological challenges to comparing generic drug prices.

Methods: We calculated all commonly used price indices based on 2013 IMS Health data on sales of 3156 generic drugs in seven European countries.

Results: There were large differences in generic drug prices between countries. However, the results varied depending on the choice of index, base country, unit of volume, method of currency conversion, and therapeutic category. The results also differed depending on whether one looked at the prices charged by manufacturers or those charged by pharmacists.

Conclusions: Price indices are a useful statistical approach for comparing drug prices across countries, but researchers and policymakers should interpret price indices with caution given their limitations. Price-index results are highly sensitive to the choice of method and sample. More research is needed to determine the drivers of price differences between countries. The data suggest that some governments should aim to reduce distribution costs for generic drugs.

Keywords: Expenditures; Generic drugs; Generic medicines; Pharmaceutical policy; Prices.

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Figures

Fig. 1
Fig. 1
Results for different price indices in 2013 with Germany as the base country. For ease of interpretation, the unit of volume is doses in all the price indices. a Comparison of retail and ex-manufacturer prices (n = 110) in a Laspeyres index. b Contrast of ex-manufacturer prices (n = 110) in a Laspeyres index with German versus French weights. c Ex-manufacturer prices (n = 110) in weighted and unweighted indices. d Comparison of ex-manufacturer prices of cardiovascular system drugs (n = 25), nervous system drugs (n = 29), and all drugs (n = 110) in a Laspeyres index. (Source: IMS Health 2013, Pricing Insights database)
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