Implications of external price referencing of pharmaceuticals in Middle East countries

Zoltán Kaló, Ibrahim Alabbadi, Ola Ghaleb Al Ahdab, Mariam Saadoun Abdulaziz Alowayesh, Mahmoud Elmahdawy, Abdulaziz H. Al-Saggabi, Vito Luigi Tanzi, Daoud Al-Badriyeh, Hamad S. Alsultan, Faleh Mohamed Hussain Ali, Gihan H. Elsisi, Kasem S. Akhras, Zoltán Vokó, Panos Kanavos

Research output: Contribution to journalArticlepeer-review

16 Citations (Scopus)

Abstract

Introduction: External price referencing (EPR) is applied frequently to control pharmaceutical prices. Our objective was to analyse how EPR is used in Middle Eastern (ME) countries and to compare the price corridor for original pharmaceuticals to non-pharmaceutical services not subjected to EPR. Methods: We conducted a survey on EPR regulations and collected prices of 16 patented pharmaceuticals and 14 non-pharmaceutical services in seven Middle Eastern (ME) countries. Maximum and minimum prices of each pharmaceutical and non-pharmaceutical technology were compared to mean prices in the countries studied by using market exchange rates. Influencing factors of pharmaceutical prices were assessed by multivariate linear regression analysis. Results: The average price corridor is narrower for pharmaceuticals (-39.8%; +35.9%) than for outpatient and hospital services (-81.7%; +96.3%). Conclusion: Our analysis revealed the importance of population size and EPR implementation on drug price levels; however, EPR results in higher pharmaceutical prices in lower-income countries compared to non-pharmaceutical services.

Original languageEnglish
Pages (from-to)993-998
Number of pages6
JournalExpert Review of Pharmacoeconomics and Outcomes Research
Volume15
Issue number6
DOIs
Publication statusPublished - 1 Nov 2015

Keywords

  • cross-national price comparison
  • external reference pricing
  • international society of pharmacoeconomics and outcomes research
  • Middle East countries
  • pharmaceutical pricing
  • price corridor for pharmaceuticals

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