Enhancing Medicine database and drug prices transparency in the Global Market

Components of drug prices

Drug prices around the world are governed by a series of variables which drive up or down its final retail price. Some of these factors are –

1 – Ease of market access

2 – Degree of competition

3 – Ease and cost of procurement

4 – Terms of delivery and volume purchased

5 – Support from government and regulatory bodies

6 – Administrative expenses and cost of doing business

How to increase price transparency

Suggestions to increase transparency in drug prices include measures such as –

1 – Encourage equitable access to medicines

2 – Encourage voluntary monitoring of drug or medicine prices through a dependable drug database or medicine database

3 – Provide equal access to the drug without factoring in socio-economic demographics

Benefits of higher price transparency

The benefits of a higher transparency are more visible in developing nations. It not only impacts the manufacturing and supply chain process but also gives impetus to healthcare practitioners to offer a more transparent level of healthcare. Having a widely available drug database can provide advantages at multiple levels. Some of these include –

1 – Advantages at the procurement level

With access to drug prices through trustworthy channels, procurement agents and suppliers can better price the product. It also improves the efficiency of the overall procurement process and brings down the cost of search for the drug from multiple sources.

2 – Remove pricing inequalities

With access to a good drug database, purchasing nations can demand better terms for drug prices that will add more muscle to their negotiating power. The search process can be streamlined and wise benchmarks can be visible.

3 – Cost savings

The end customers will be better informed of the drug prices on a broader level. This way any malpractices related to an artificial increase of prices can be avoided. The key benefits of this point