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NOTICIAS DE LA ORGANIZACIÓN 
PANAMERICANA DE LA SALUD - OPS
    

 

Equitable Pricing of Newer Essential Medicines for Developing Countries: 
Evidence for the Potential of Different Mechanisms

Cheri Grace

Research Associate, London Business School, 2003

Essential Drugs and Medicines Policy (EDM) of the World Health Organization (WHO) and
Department for International Development (DFID) Health Systems Resource Centre

Available online as PDF file at:
http://www.healthsystemsrc.org/publications/Issues_papers/equitable_pricing_
essential_med.pdf

"......The study was carried out in support of the wider process of developing feasible policy options to increase access to essential medicines.

The terms 'differential pricing', or 'equitable pricing' can be defined as pricing based on ability to pay.

As it relates to the policy goal of maximizing health impact through affordability of medicines, a more accurate term might be 'equity pricing', where countries apply a price structure or pricing policy according to some principle of fairness or equity. In practice this may mean proportionality with income per capita, human development index or similar indicators.

The report focuses on the voluntary mechanisms - bulk purchasing and competitive tendering; voluntary tiered pricing agreements; and voluntary licensing - and on how to more effectively capture advantages from these mechanisms. Evidence for the potential impact of other mechanisms, including compulsory licensing; delay in patent protection, as allowed by the Doha Declaration; systematic, government imposed patent waivers; and price controls has also been analysed.

.....In the final section of the report, each mechanism is analysed according to a range of factors, such as impact on price reduction, possible effect on R&D, product and disease scope, impact on the poor, predictability, transparency, and sustainability. The mechanisms are examined individually as well as in relation to each other......"

This message from the Pan American Health Organization, PAHO/WHO, 
is part of an effort to disseminate information related to Equity, Health inequality; socioeconomic inequality in health; socioeconomic health differentials. Gender, Violence, Poverty, Health Economics, Health Legislation, Ethnicity, Ethics, Information Technology and Virtual libraries,  Research & Science issues.  [IKM Area]

PAHO/WHO Website: http://www.paho.org/English/HDP/   
EQUITY List - Archives - Join/remove: http://listserv.paho.org/Archives/equidad.html

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