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KMID : 1170320100160030041
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Korean Journal of Health Economics and Policy
2010 Volume.16 No. 3 p.41 ~ p.62
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International Comparison of Generic Medicine Prices
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Kim Soo-Jin
Kwon Soon-Man
Jung Youn
Heo Jae-Heon
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Abstract
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Rapid increase in pharmaceutical expenditure is a big concern for health policy and there is a controversy over whether the prices of medicines are adequate in South Korea. This study aims to carry out an international comparison of the prices of generic medicines of 80 molecules that are frequently used in South Korea. Using IMS data on ex-manufacturer prices of generic medicines in 15 countries and South Korea in 2008, we performed two analyses. Individual prices of selected molecules (with the same strength and formulation) were compared between South Korea and other countries. Then 4 types of bilateral price indexes for each country were computed relative to South Korea: Laspeyres index, Paasche index, Fisher index and Walsh index, which are classified by the method of weighting. For the price comparison of individual molecules, the results varied depending on molecules because of the differences in pharmaceutical markets in each country, such as the pattern of preferred molecule and volume. Comprehensive price indexes showed generic prices in foreign countries, except Switzerland and Japan, are about 10-50 percent lower than those in South Korea. And the price indexes using GDP (Gross Domestic Product) PPP (Purchasing Power Parities) suggested that South Korea’s prices of generic medicines are the highest. The results show that in South Korea more expensive molecules are consumed and the overall price of generic medicines are higher than in other advanced countries.
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KEYWORD
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generic medicine, pharmaceutical price, price index
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