[e-drug] Medicine prices in Shandong Province, China

["marg" <marg@haiweb.org>]

E-DRUG: Medicine prices in Shandong Province, China
---------------------------------------------------

Dear E-druggers

New report shows poor availability of medicines in Shandong Province, China

The Centre for Health Management and Policy at Shandong University in China has published a report on findings from a medicine price survey undertaken in late 2004, using the Health Action International/World Health Organization price measurement methodology.

See http://www.haiweb.org/medicineprices/25082006/Shandong_report_15_June_0
6FINAL.doc

Data was collected on the patient price and availability of 39 medicines in the public and private sectors of the capital, Jinan, and three other counties. Public sector procurement prices were also collected. Local prices were compared to those reported in the 2003 Management Sciences for Health (MSH) International Drug Price Indicator Guide.

Key findings include:

*	The patient price of generics in the public and private sectors were reasonable compared to MSH prices, but high for originator brands (7 times the MSH price in the private sector)

*	Patients in the public sector pay an additional 22% of the procurement price for originator brands and 75% more for generics

*	Lowest priced generics were 30% cheaper in the private sector compared to the public sector; originator brands were about the same price 

*	In the private sector, originator brands were about 14 times more expensive than the lowest priced generic. In the public sector, the difference was 4 times. 

*	Availability was low in both the public sector facilities surveyed and the private retail pharmacies. Of the surveyed medicines on their Essential Medicines List, median availability was only 10% in the public sector (generics). Generic versions of only 7 of the 39 medicines surveyed were found in more than half the retail pharmacies surveyed (and only one originator brand). However, the author Sun Qiang noted that some of the medicine strengths surveyed are rarely used in Shandong

*	Many treatments are not affordable e.g. a lowest paid unskilled government employee needing metformin 500mg tabs to treat diabetes has to work about 10 days to purchase a month's treatment. Switch to glibenclamide or rosiglitasone? Glibenclamide was rarely found (only 5% in the public and private sector facilities surveyed) and it would take nearly a month's wages to purchase a month's treatment with rosiglitazone. 

The survey team recently meet with stakeholders to discuss all the findings (including representatives from the government, pharmacy association, and pharmaceutical industry association). They supported price transparency and were keen to develop a regular price monitoring system in Shandong Province (with a focus on commonly used medicines to treat illnesses such as cardiovascular disease, diabetes, paediatric illnesses). They also felt it was important that consumers be informed about prices, and suggested a pamphlet be widely distributed showing current prices.

You can access the data and report on HAI Europe's website
http://www.haiweb.org/medicineprices/surveys/200411CN/survey_report.pdf

Regards

Margaret Ewen

Principal, Global Projects
Health Action International (HAI) Europe
Jacob van Lennepkade 334T
1053 NJ Amsterdam
The Netherlands
Tel: +31 20 489 1846 (direct), +31 20 683 3684 (office)
Fax: +31 20685 5002
Email: marg@haiweb.org
Web site: http://www.haiweb.org