You can take it to the bank. Decision Resources says in a new report, Pharmaceutical Pricing and Reimbursement: Key Facts in Mature and Emerging Markets, that price regulation of drugs will increase in both mature and emerging pharma markets.
Most developed economies already exert price controls but this will increase. Both the UK and Germany, for example, have announced their intentions to implement a 'value-based pricing' model. The US, which allows free pricing, will increase Medicaid rebates and also require a 50% discount on drugs in the Medicare program.
But, don't relegate this phenomenon to just mature markets, emerging markets will join in too. These goverments are expected to demand prices lower than those seen in more developed economies. Substantial budget deficits all over are also expected to exert a downward influence on prices as governments try to keep a lid on healthcare spending. Cost containment may well be disproportionately focused on pharma according to the report (it's easier to see). See Medical News Today for more.
"Drugs that lack proof of innovation will be subject to reimbursement restrictions, unless manufacturers offer prices that are in line with, or below, the prices of competing medicines that are already on the market," said Neil Grubert, M.A., director of pricing and reimbursement research at Decision Resources.
Posted by Bruce Lehr December 10th 2010.
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