Affluent nations shell out higher prices for critical medications, study reveals, yet the financial strain is significantly reduced compared to initial expectations.
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The affordability of essential medicines varies significantly across different regions, influenced by factors such as country income levels, regulatory policies, market size, and purchasing power parity. A recent study published in the journal JAMA Health Forum has shed light on these disparities.
The researchers analysed 549 essential medicines across 72 markets worldwide, including over-the-counter painkillers, antibiotics, anaesthetics, mental health drugs, and more. They used Germany as a benchmark to adjust prices for local purchasing power.
Europe generally shows higher affordability, with countries like Germany, France, and the United Kingdom having extensive government control on drug prices, use of reference pricing, and negotiation. Despite high nominal prices, these countries have moderate costs when adjusted for purchasing power. In contrast, the Americas, particularly the United States, have some of the highest nominal drug prices globally, up to three times the German level. However, generic drug prices can be low, offering some relief.
Southeast Asia and Africa face significant challenges with lower affordability. For instance, in parts of Africa and Southeast Asia, critical medicines can cost several weeks' worth of wages if paid out of pocket. Lebanon, for example, has medicine prices roughly one-fifth of German prices, but the lower incomes in the country mean that affordability remains a challenge.
Wealthy countries, despite paying high prices for medicines, benefit from some of the lowest costs in the world. For example, minimum-wage earners in India need about 10 days of work to afford a monthlong dose of tenofovir disoproxil, a medicine used to treat hepatitis B. In contrast, for the chemotherapy drug paclitaxel, minimum-wage laborers in lower-income countries would need to work for nearly six weeks to pay for a monthlong course of the treatment.
The study also found that European countries spent approximately €167 per capita on essential medicines in 2022, while the Americas spent $1 billion (€868 million) and Southeast Asia spent $7 (€6) per capita.
In conclusion, affordability depends on income levels, regulatory frameworks, pricing strategies, and market conditions. Europe generally achieves better affordability through active regulation, the U.S. faces high costs for branded drugs but competitive generics, and Southeast Asia and Africa struggle with high relative prices and low incomes. Understanding these disparities is crucial for ensuring equitable access to essential medicines worldwide.
Science reveals that the affordability of essential medicines significantly varies across regions, with health-and-wellness outcomes potentially impacted. For instance, lower-income countries in Southeast Asia and Africa struggle with high relative medicine prices and lower incomes, which might affect their access to these life-saving drugs and their health outcomes. On the other hand, health-and-wellness improvements may be more achievable in regions like Europe, where regulatory frameworks support affordable access to essential medicines.
