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Journal 2
Journal 2
Journal 2
Research Paper
JPHSR 2012, 3: 103–107
© 2012 The Authors
JPHSR © 2012 Royal
Pharmaceutical Society
Received November 16, 2011 A study comparing the retail drug prices between Northern
Accepted November 17, 2011
DOI Malaysia and Australia jphs_80 103..107
10.1111/j.1759-8893.2011.00080.x
ISSN 1759-8885
Mohamed Azmi Hassalia, Asrul Akmal Shafiea,
Zaheer-Ud-Din Babarb and Tahir Mehmood Khanc
a
Discipline of Social and Administrative Pharmacy, School of Pharmaceutical Sciences, Universiti Sains
Malaysia, Penang, Malaysia, bSchool of Pharmacy, Faculty of Medical & Health Sciences, The University of
Auckland, Auckland, New Zealand and cDepartment of Pharmacy Practice, College of Clinical Pharmacy,
King Faisal University, Alahsah, Kingdom of Saudi Arabia
Introduction
Prescription drug expenditures are one of the fastest growing components of national health
budgets.[1] Price is clearly one of the greatest barriers to the access to essential drugs.[2] It has
been reported that the purchase of medicines contributes significantly to the healthcare
budget of developing countries and that drug expenditures may account for 50–90% of
non-personnel costs.[3] Furthermore, cost-related underuse among the non-insured popula-
tion is very common; even small increases in drug prices can dramatically affect medication
adherence among the poor.[4]
Globally different schemes are implemented to regulate drug prices; for example France
and Italy regulate drug prices directly through price control. However, Germany and Japan
maintain price control indirectly through reimbursement under social insurance schemes. In
Britain the National Pharmaceutical Pricing Authority monitors prices through the Pharma-
ceutical Price Regulation Scheme, which controls the prices of branded prescription medi-
cines by regulating the profits that companies can make on sales.[5]
Conversely, the Malaysian health sector lacks pricing control, and a ‘price deregulation
system’ is employed in which manufacturers, distributors and retailers set medicine prices
without government interference. Indeed, due to deficient price control medicine prices in
Malaysia have been reported to be escalating even faster than in the developed world.[6–8] In
the private health sector drug prices are considerably higher because doctors are allowed to
dispense and prescribe medicines and they tend to charge higher mark-ups. Furthermore,
mark-ups are also known to be higher in the pharmaceutical supply chain, contributing to
Correspondence: Mohamed high drug prices overall.[9]
Azmi Hassali, Discipline of Social In addition to price deregulation, which occurred in 1994, the Malaysian government
and Administrative Pharmacy, has approved a privatized drug-distribution system for public health care facility. It was
School of Pharmaceutical
Sciences, Universiti Sains
believed that this system would help to reduce administrative and financial burdens and
Malaysia, Penang, Malaysia. would ensure an efficient healthcare sector and facilitate the economic growth.[10] Unfortu-
E-mail: azmihassali@usm.my nately, the predictions for this ‘free market economy’ went wrong and immediately after the
103
104 Journal of Pharmaceutical Health Services Research 2012; 3: 103–107
privatization of the distribution system a substantial increase Table 1 Drug category based on indication and poison schedule
of about 3.3-fold was observed in medicine costs.[11] Recent
Drug category Drugs investigated Poison list
studies confirm the sustained increasing trends in the price of
in this study
certain essential medicines like anti-infective and cardiovas-
cular agents.[5,7,8] Perhaps in the public sector the variation in 1 Analgesic (non-steroidal Diclofenac Group C
prices can be controllable because the chain of command is anti-inflammatory drugs)
managed by the Malaysian Ministry of Health. However, due 2 Anti-asthmatic agent Salbutamol Group C
to the occasional scarcity of medicines that sometimes occurs 3 Antidiabetic agent Metformin Group C
and the long waiting hours at public outlets many people Gliclazide Group C
4 b-Blocker agent Atenolol Group B
prefer to seek health care from dispensing doctors or private
Metoprolol
hospitals.[12] It is evident that in the private sector (i.e. private 5 Calcium-channel blocker Amlodipine Group B
hospitals, clinics, physician-operated dispensaries and com- Nifedipine Group B
munity pharmacies) there are major variations in drug prices. 6 Dyslipidaemic agent Atorvastatin Group B
It is woeful to see that many generic medicines were found to
Table 2 Retail prescription drugs price differences between Australia and Malaysia
Brands (prescription drugs) Number of Mean retail Malaysian price relative Manufacturer
retail pharmacies price per dose* to Australian price
in Penang selling MYR AUS Price difference % Difference (Malaysia
the drug
(in MYR) compared with Australia)
*Conversion rates based on international exchange rate on 14 August 2010: 1 AUS=2.83042 MYR.
Brands (prescription drugs) Maximum price Median price Minimum price Mean price Standard
per dose (MYR) per dose (MYR) per dose (MYR) per dose (MYR) Deviation (SD)
Penang were also calculated to see the possible retail price mark-up price for the Bukit Jambul region was found to be
differences between the pharmacies in Penang (Table 3). The higher than for the pharmacies in other regions. Details about
price of calcium-channel blocker Norvasc® (amlodipine) was the price variation of the selected medicines in the three
highly variable within Penang (MYR3.34⫾1.76). Interest- regions are given in Table 4.
ingly, other antihypertensive medicines (i.e. Noten and
Betaloc) were found to be less variable in terms of retail price Discussion
(SD ⫾0.07). It was also noticed that for some drugs the price
of a unit dose was exceptionally high. The highest retail This was perhaps the first study in Malaysia to compare the
mark-up price for Norvasc was MYR8.67 per 10 mg tablet, price of medicines with those in a developed country. In
and for Lipitor® (atorvastatin) the highest price was Malaysia, drug prices vary across the country. As there is a
MYR7.17 per 20 mg tablet. See Table 3. lack of generic medicines on the National Essential Drug List
Moreover, to see the price variation for the selected drugs and the Drug Formulary in the public sector, patients buy such
in the state of Penang, mean prices were compared among the medicines from private sector outlets such as retail pharma-
three regions (Bukit Jambul, Pekaka and Bayan Lepas) from cies. Unfortunately, due to the absence of a national drug
which the pharmacies were selected for data collection. pricing policy it is hard for the public to get essential drugs at
Overall, every region has its own prices. However, the the same price across the country.[16] Cross-national differ-
106 Journal of Pharmaceutical Health Services Research 2012; 3: 103–107