The prices of drugs in various countries vary considerably. On average, in low-income countries, pharmaceutical companies charge lower prices than in industrialized countries. The ability of producers to price products differently for various markets — a practice known as price discrimination — increases overall profit. However, more investment in research and development is also likely, and therefore more new medicines will be on the market. Although eliminating price discrimination to reduce costs could be advantageous to customers in the short term, it would harm them in the long term by reducing the number of new medicines produced.
A new study, conducted by Medbelle Digital Health Provider, has revealed the striking cost disparities between 50 major healthcare systems worldwide.
The data show that the most costly country, the United States, pays for medicines three times the average price. Thailand, which is the least expensive, pays about 90% less than the median price.
Germany (+ 125.64%) and the UAE (+ 122.03%) are other relatively expensive places to buy medicines. In Britain, the median price is 5 percent higher.
The estimates cover branded products and generic products which come from 13 of the most commonly used pharmaceuticals. The drugs range from cardiovascular problems, asthma, depression and erectile dysfunction to many of the common conditions.
‘ One of the biggest outcomes is the rise in medicine costs in America compared with the rest of the world. ‘ Medbelle managing director Daniel Kolb stated.
For example, “Take Insuline; our study shows that America’s median for life-saving diabetes is about five and a half times higher than the global median,” he added.
Concerted drug price pressure in the USA has led to some companies pledging to limit price increases. French pharmacist Sanofi (Euronext: SAN) said in April 2019 that it was going to limit some people’s costs of insulin drugs to $99 a month.