New pricing models for generic medicines to ensure long-term sustainable competition in Europe
Background: Price erosion of generic medicines over time as a result of existing pricing policies in combination with increasing operational costs of these products due to high inflation, undermine long-term sustainable competition in European off-patent medicines markets. Therefore, the aim of this...
| Main Authors: | , , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-10-01
|
| Series: | Frontiers in Pharmacology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fphar.2023.1200641/full |
| _version_ | 1827796825861521408 |
|---|---|
| author | Clement Francois Clement Francois Gabriela Gawlik Jorge Mestre-Ferrandiz Adrian Pana Julian Perelman John Yfantopoulos Steven Simoens |
| author_facet | Clement Francois Clement Francois Gabriela Gawlik Jorge Mestre-Ferrandiz Adrian Pana Julian Perelman John Yfantopoulos Steven Simoens |
| author_sort | Clement Francois |
| collection | DOAJ |
| description | Background: Price erosion of generic medicines over time as a result of existing pricing policies in combination with increasing operational costs of these products due to high inflation, undermine long-term sustainable competition in European off-patent medicines markets. Therefore, the aim of this study is to identify new potential pricing models for retail generic medicines in Europe, examine their pros and cons, and illustrate them with examples inside or outside the pharmaceutical sector.Methods: A targeted literature review, one-to-one interviews and a joint advisory board meeting with experts from five European countries were carried out to assess potential pricing models for generic medicines.Results: We identified ten pricing models that can be applied to generic medicines. The tiered pricing model is viewed as a sustainable solution ensuring competitiveness, but requires market monitoring using a supportive IT infrastructure. De-linking the price of generic medicines from that of the off-patent originator medicine prevents the originator from forcing generic medicines’ prices to unsustainable levels. Higher costs due to inflation can be compensated in the automatic indexation model. Other pricing models that have less implementation potential include the one-in-one/multiple-out model, tax credits, value-based pricing, volume for savings and guaranteed margin/fee models. The hypothecated tax and cost allocation models, which add a patient fee to generic medicines prices, are not likely to be socially acceptable.Conclusion: When considering a new pricing model for generic medicines, the impact on innovative medicines and the characteristics of the healthcare system in a given country need to be taken into account. Also, there is a need to continuously follow up the level of competition in off-patent medicines markets and to identify sustainability risks. |
| first_indexed | 2024-03-11T19:12:33Z |
| format | Article |
| id | doaj.art-d6f634cc57d6489f86c1fa0207681d94 |
| institution | Directory Open Access Journal |
| issn | 1663-9812 |
| language | English |
| last_indexed | 2024-03-11T19:12:33Z |
| publishDate | 2023-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Pharmacology |
| spelling | doaj.art-d6f634cc57d6489f86c1fa0207681d942023-10-09T11:20:04ZengFrontiers Media S.A.Frontiers in Pharmacology1663-98122023-10-011410.3389/fphar.2023.12006411200641New pricing models for generic medicines to ensure long-term sustainable competition in EuropeClement Francois0Clement Francois1Gabriela Gawlik2Jorge Mestre-Ferrandiz3Adrian Pana4Julian Perelman5John Yfantopoulos6Steven Simoens7Aix Marseille University, Marseille, FrancePutnam PHMR, Paris, FrancePutnam PHMR, Krakow, PolandUniversidad Carlos III, Madrid, SpainDepartment of Public Health, Babes Bolyai University, Cluj Napoca, RomaniaNOVA National School of Public Health, Public Health Research Centre, Comprehensive Health Research Center, CHRC, NOVA University Lisbon, Lisbon, PortugalIPOKE Research Institute, MBA-University of Athens, Athens, GreeceKU Leuven Department of Pharmaceutical and Pharmacological Sciences, Leuven, BelgiumBackground: Price erosion of generic medicines over time as a result of existing pricing policies in combination with increasing operational costs of these products due to high inflation, undermine long-term sustainable competition in European off-patent medicines markets. Therefore, the aim of this study is to identify new potential pricing models for retail generic medicines in Europe, examine their pros and cons, and illustrate them with examples inside or outside the pharmaceutical sector.Methods: A targeted literature review, one-to-one interviews and a joint advisory board meeting with experts from five European countries were carried out to assess potential pricing models for generic medicines.Results: We identified ten pricing models that can be applied to generic medicines. The tiered pricing model is viewed as a sustainable solution ensuring competitiveness, but requires market monitoring using a supportive IT infrastructure. De-linking the price of generic medicines from that of the off-patent originator medicine prevents the originator from forcing generic medicines’ prices to unsustainable levels. Higher costs due to inflation can be compensated in the automatic indexation model. Other pricing models that have less implementation potential include the one-in-one/multiple-out model, tax credits, value-based pricing, volume for savings and guaranteed margin/fee models. The hypothecated tax and cost allocation models, which add a patient fee to generic medicines prices, are not likely to be socially acceptable.Conclusion: When considering a new pricing model for generic medicines, the impact on innovative medicines and the characteristics of the healthcare system in a given country need to be taken into account. Also, there is a need to continuously follow up the level of competition in off-patent medicines markets and to identify sustainability risks.https://www.frontiersin.org/articles/10.3389/fphar.2023.1200641/fullgeneric medicinespricingcompetitionsustainabilityEurope |
| spellingShingle | Clement Francois Clement Francois Gabriela Gawlik Jorge Mestre-Ferrandiz Adrian Pana Julian Perelman John Yfantopoulos Steven Simoens New pricing models for generic medicines to ensure long-term sustainable competition in Europe Frontiers in Pharmacology generic medicines pricing competition sustainability Europe |
| title | New pricing models for generic medicines to ensure long-term sustainable competition in Europe |
| title_full | New pricing models for generic medicines to ensure long-term sustainable competition in Europe |
| title_fullStr | New pricing models for generic medicines to ensure long-term sustainable competition in Europe |
| title_full_unstemmed | New pricing models for generic medicines to ensure long-term sustainable competition in Europe |
| title_short | New pricing models for generic medicines to ensure long-term sustainable competition in Europe |
| title_sort | new pricing models for generic medicines to ensure long term sustainable competition in europe |
| topic | generic medicines pricing competition sustainability Europe |
| url | https://www.frontiersin.org/articles/10.3389/fphar.2023.1200641/full |
| work_keys_str_mv | AT clementfrancois newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT clementfrancois newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT gabrielagawlik newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT jorgemestreferrandiz newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT adrianpana newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT julianperelman newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT johnyfantopoulos newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope AT stevensimoens newpricingmodelsforgenericmedicinestoensurelongtermsustainablecompetitionineurope |