Pricing, Manufacturing & Distribution

Leaders

  1. Gilead 
  2. AbbVie
  3. Novo Nordisk

Further Reading

2014 Access to Medicine Index - Pricing, Manufacturing & Distribution

2014 Company Ranking Pricing, Manufacturing & Distribution

Top findings in Pricing, Manufacturing & Distribution

Companies consider affordability for one-third of all relevant marketed products

One-third of products captured by the 2014 Index are covered by equitable pricing strategies that include affordability rationales. This equals 230 out of 700 products captured. In turn, almost one-third of these products (74 out of 230) are targeted towards the poorest population segment.

Greater involvement in equitable pricing, particularly intra-country segmentation

Compared to 2012, more companies commit to or newly engage in equitable pricing, tailoring their prices to different population segments. Two companies have newly implemented inter-country equitable pricing.Yet, the improvement in intra-country equitable pricing is greater, albeit from a lower baseline: three companies newly commit to such strategies, while four have newly implemented them.

Six companies are innovating to improve affordability

Evidence of innovation included a micro-financing project, a differential pricing strategy with a clustered approach to segmentation, micro health-insurance products, quality monitoring in distribution, smaller-dose insulin products, and innovative production techniques, including a soft-chew tablet and semi-synthetic artemisinin production.

On average, products are registered in only a few relevant countries

Individual products are registered in an average of only three low income countries and six of the other countries in scope. Combined, this represents just 17% of the Index’s entire geographic scope, and just 8% of low income countries in scope.

Companies lack universal pricing guidelines for sales agents

The majority of companies have yet to set clear, universal pricing guidelines for their sales agents in countries in scope, and most do not monitor mark-ups. Even where guidelines are in place, no company trains its agents on their implementation. No company has guidelines that universally apply to third-party distributors, wholesalers and retailers.

Companies implement stringent drug-recall policies and procedures

In general, the industry commits to consistently high standards in drug recalls: 14 companies have stringent policies on drug recalls that comply with WHO Good Manufacturing Practice (GMP) guidelines in all relevant countries. This is an improvement on 2012, when only three companies reported equivalent policies and country coverage, and a further seven reported policies that covered only some relevant countries.

Download the full Index analysis of Pricing, Manufacturing & Distribution:

• Sub-ranking and analysis of how companies performed in this area
• Report on product registration and market approvals
• Analysis of how companies use equitable pricing
• Overview of brochure and packaging adaptation
• Report on accountability for sales' agents pricing practices
• Analysis of drug-recall policies and practices
• Overview of best practices in this area 
• Overview of innovation in pricing, manufacturing and distribution

Download the full Index analysis of Pricing, Manufacturing & Distribution

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