This document discusses drug pricing in international markets. It presents factors that affect drug prices globally such as a country's income level, government regulation, research and development costs, and intellectual property laws. The document compares drug prices between countries like India, where prices are much lower, and the US, where prices are often over 80 times higher. Government bodies that control drug pricing are also reviewed for countries including the US, India, Pakistan, and UK.

1. DRUG PRICING IN
INTERNATIONAL MARKETS
PRESENTED BY :
PREETI GULATI
KUNAL GUPTA
GURSIMRAN SINGH

2. CASE INSIGHTS
• This Case is All about the Pricing Decisions in
International Markets & What are the other
Factors which affect the pricing decisions in
International Markets .
• Cross Country Comparison of Drug prices.
• HIV /AIDS Drugs Pricing Variation
• Controlling Bodies of Drugs Pricing in
International Market
• Conclusion

3. FACTORS AFFECTING INTERNATIONAL
PRICING

4. CROSS COUNTRY COMPARISON OF
DRUG PRICES

5. TABLE ANALYSIS
From the Table we can easily analyse that
• Price of Diclofenac Sodium in the USA is 193
times its price in India .
• Ciproflaxin HCL costs Rs 29 in India but Rs
2353 in USA .
• The Price Difference between the Two
Countries is 81 Times

7. Effects of patents on the price of
medicines
•
Prices of branded, patented products are often far
higher than the prices of similar medicines produced
by alternative or generic sources. For example, the
Indian generic producer, Cipla, is able to offer its AIDS
combination medicines for US$150-300 per year per
patient, compared with the US$10,000-15,000 being
sold by the MNCs.
In countries where alternative or generic medicines are
available, the price of a branded product usually falls
as a result of the competition it faces from low-priced
alternatives. The same brand is sold at a higher price in
countries where there is no competition from generic
producers

8. DRUG PRICING IN INDIA
NPPA- is the National Pharmaceutical Pricing Authority which is
an organization constituted by the government of India. This
organisation's responsibility is to fix and revise the prices of
controlled bulk drugs and formulations. Its objective is to enforce
low prices and good availability of pharmaceuticals in India.
The retail price formulations are worked out as per the formula of
DPCO.
R.P= [M.C. + C.C. + P.M. +P.C.]X [1+MAPE. /100]E.D.
R.P. = Retail Price.
M.C. = Material Cost.
C.C. = Conversion Cost.
P.M. = Cost of Packing Material.
M.A.P.E. = Maximum Allowable Post- Manufacturing Expenses.
E.D. = Excise Duty.

9. DRUG PRICING IN USA
• USA is a big player in the innovation of drugs. The US market is
based on competitive structure and is thoroughly supported by
insurance companies. It is not strictly controlled by regulations. IPR
protection is high.
Here companies are allowed to price their own products without
interference from the Government. Drug prices are determined by
a. Cost of R&D
b. Marketing and Distribution
c. Demand for the product

10. CONTROLLING AUTHORITIES IN
COUNTRIES
 USA - (USFDA) US Food & Drug Administration
INDIA-(NPPA) National Pharmaceutical Pricing
Authority
PAKISTAN – (DRAP) Drug Regulation authority of
Pakistan
UK - National Institute of Clinical Excellence and
the Health Technology Board

11. CONCLUSIONS
We would like to summarize by saying that when we
make a comparison of the prices of medicines in
different countries, we arrive at the following
conclusions:
1. Drug prices are dictated by the overall income level
of the people of the country.
2. Drug prices depend on how much control the
government is exercising on the pharmaceutical
manufacturers.
3. How much research and development is taking
place in the field of pharmaceuticals and what is the
cost of this R& D.
4. How much the government and the society are
concerned about protection of intellectual property
rights.

12. • India is a country where the drugs of high quality
and low price are made and the world is exploiting
this fact by importing drugs on a large scale, this is
especially true with anticancer and anti AIDS drugs.
• There is medical and health tourism in India.
People from USA and UK come to Mumbai and
Chennai not only to enjoy India's oriental
attractions but also to undergo major surgeries
because of the fact that prices of healthcare in India
is very low compared to advanced countries.