Effect of Government Mediated Access Pricing on Prices of Targeted Drugs in the Philippines

Introduction The Philippines implemented the Cheaper Medicines Act of 2008 to improve access to quality drugs. Thereafter, the government placed 5 drugs under maximum drug retail pricing (MDRP) and influenced pharmaceutical companies to reduce by half prices of 16 branded drugs, referred to as drugs under government-mediated access prices (GMAP). The effect of GMAP on prices of drugs carrying similar molecules has not been well-studied. This study compared the price of selected drug molecules directly affected by the MDRP/GMAP policies in 2009 and 2011. Methods The study used data obtained from independent surveys conducted by IMS Health Philippines in 2009 and 2011 using a stratified sample of 600 drug stores each. Prices of the following categories of stock keeping units (SKUs) for 11 drug molecules placed under MDRP/GMAP listing were obtained: 1) innovator brand; 2) competitor brand; and 3) cheapest generic counterpart available. Price data was obtained using a mystery shopper approach. Differences in mean and median drug prices between 2009 and 2011 for each drug were calculated. Results Being MDRP/GMAP reference drugs, there were expected compulsory reductions in mean prices of 10 of 11 innovator brands. Reduction of mean prices of competitor drugs occurred on a relatively smaller scale. Mean prices in 2011 of competitor drugs tended to settle near the GMAP reference levels. Mean prices of the cheapest generic drugs all went down significantly. Conclusion Government-mediated pricing could be an effective means of reducing prices of targeted drugs in similar fashion as reference pricing. © 2014 AESS Publications. All Rights Reserved.