PharmacoEconomics & Outcomes News 446 - 14 Feb 2004

Drug pricing issues in spotlight inUS, S Africa

Under the terms of a proposed US/Australia tradeagreement, it is understood that US governmentagencies that purchase pharmaceuticals, such as theDepartments of Defense and Veterans Affairs andothers, will be exempt from drug price negotiationtransparency requirements, reports the Pink Sheet.1

Australia will grant some concessions regarding theprocess it uses to place prescription drugs on itsPharmaceutical Benefits Scheme, the country’s drugsubsidy programme, as part of the bilateral agreement.Transparency provisions are being sought by the US thatrequire the Australian government to provide writtenjustification for pricing decisions at different stages ofthe process.

Meanwhile, draft regulations have been prepared bythe South African government that would see drugprices fall by 40–70% compared with prices currentlypaid by consumers, states Scrip.2 It will be compulsoryfor drug manufacturers to set a ‘single exit price’ fordrugs, at which the drug will be sold to all parties, underthe ‘transparency pricing system’.1. International Rx pricing debate plays out in U.S./Australia trade negotiations.

FDC Reports - Pink Sheet - Prescription Pharmaceuticals and Biotechnology 66:14-15, No. 4, 26 Jan 2004.

2. Medicine prices in South Africa to fall by 70%. Scrip : 19, No. 2921, 28 Jan2004.

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PharmacoEconomics & Outcomes News 14 Feb 2004 No. 4461173-5503/10/0446-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved