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Case Study: HIV - Better Differential Pricing Strategies are Needed to Ensure Access to HIV Drugs
Datamonitor, May 2011, Pages: 43
Although the majority of HIV drug developers already offer most of their antiretrovirals under differential pricing schemes for lower income countries, few can compete with the lower prices of available generics offered through donor-funded programs. Innovative ways must be found that can balance widespread access to newer HIV drugs while still ensuring profits for pharmaceutical companies.
Features and benefits
- Discussion of differential pricing strategies for pharmaceuticals
- Review of differential pricing strategies for HIV antiretrovirals
- Analysis of driving forces behind the need for better differential pricing strategies for antiretrovirals
- Discussion of incentives that could boost differential pricing policies
Highlights
- Although differential pricing strategies are being employed in some areas, several obstacles have so far limited a more widespread utilization. Key difficulties include the threat of parallel trade, external reference pricing, decreased buying power in lower income countries, and concerns that preferential prices are not passed on to consumers.
- Generics have increasingly driven down the price for antiretrovirals in lower income markets, making it difficult for pharmaceutical companies and their branded products to stay competitive despite using differential pricing strategies
- An increasing need for later-stage treatments and stricter enforcement of intellectual property (IP) rights call for improved strategies to enhance access to newer antiretrovirals
Your key questions answered
- Understand why many HIV markets in developing countries are dominated by generics despite differential pricing by innovative drug developers.
- Learn how differential pricing can be a win-win strategy to promote access to drugs while retaining incentives for pharmaceutical companies.
- Understand why better differential pricing strategies will be key in allowing access to newer antiretrovirals.
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