Global Insight Perspective | |
Significance | An upward adjustment by drug manufacturers has seen the price of some non-prescription drugs jump by 10-15% since January 2008, much to the dissatisfaction of Croatian patients. |
Implications | Drug manufacturers say that the price increases affect a relatively small number of non-prescription drugs and are due to increasing prices of active ingredients and manufacturing processes. |
Outlook | Higher prices may be driven in part by the national health insurance fund (HZZO)'s recent reduction on the prices of reimbursed drugs, in the range of 1% and 20%-30%. |
The price of a number of non-prescription drugs on the market has been increased by drug manufacturers, on average between 10-15%, reports Croatian Vijesti Net. Croatian drug-makers Pliva, Belupo, and Jadranski Galenski laboratory, as well as German Bayer, are among the companies that have upwardly corrected the prices of some over-the-counter (OTC) drugs. Leading generic producer Pliva has said that the correction of drug prices was made on a small number of drugs in its portfolio, accounting for 5% of its annual turnover. The company has blamed rising production costs and costs of parallel competitor products for its decision.
Similarly, Croatian Belupo has said that only five of its products have been affected by recent price increases, including analgesics Andol and Aspirin, gastric remedy Gastal, cough remedy Bisolex, and effervescent tablets Coldrex and Supradyn (see table below)
Drug-Price Increases from January 2008 | |||
Drug's brand name | Former Price (kuna) | Current Price (kuna) | % change |
Andol | 8.10 | 9.32 | 15.0 |
Plivadon | 9.50 | 10.70 | 12.6 |
Aspirin | 15.66 | 17.54 | 12.0 |
Gastal | 18.92 | 21.74 | 14.9 |
Bisolex | 18.92 | 20.79 | 9.9 |
Voltaran | 30.49 | 46.34 | 52.0 |
Coldrex | 34.0 | 40.0 | 17.6 |
Supradyn | 39.0 | 41.7 | 6.9 |
Source: Vijest, 2008, 1kuna=US$0.2. | |||
Belupo has also maintained that increased input costs are behind recent price rises, which have been in effect since December 2007, affecting a total of five OTC products:
Belupo's Drug Price Increases | |||
Drug's brand name | Former Price (kuna) | Current Price (kuna) | % change |
Belosept | 19.0 | 25.0 | 31.5 |
Flocet | 13.50 | 18.0 | 33.3 |
Lupocet (syrup) | 14.0 | 17.0 | 21.4 |
Silymarin | 41.0 | 43.0 | 4.8 |
Lupocept | 14.0 | 15.50 | 10.7 |
Source: Vijest, 2008, 1 kuna=US$0.2. | |||
The Association of patients in Croatia has expressed its dissatisfaction with the recent price rises. Marijo Drlje, President of the Croatian Association of Patients said that he does not blame drug manufacturers, but healthcare policy. Croatia's national health insurance fund (HZZO) recently reduced the prices of some drugs on the essential reimbursement list in the range of 1% and 20%-30%. A two-tier reimbursement system was introduced in Croatia in 2006, with an essential drug-reimbursement list and a supplementary-drug list (see Croatia: 1 May 2006: Croatia Moves Closer to Two-Tier Drug Reimbursement). Patients now need to pay a co-payment in order to obtain drugs from the supplementary list.
Outlook and Implications
The latest price rises are a result of rising production costs, but are also in part driven by the recent decision of the HZZO to reduce the price of certain drugs from the essential drug-reimbursement list. Operating conditions in Croatia are tough as the HZZO owes pharmaceutical companies more than 2.2 billion kuna (US$459.4 million) and payment delays currently exceed 270 days (see Croatia: 17 January 2007: Reimbursement Delays for Pharmaceuticals in Croatia Reach 230 Days).
Drug manufacturers, it seems, have decided to make up for their losses on drug prices from the essential list with price increases on OTC drugs. In principle, drug-makers are entitled to freely set the price of OTC drugs, but the patients' strong criticism stems from the fact that many of the affected products belong to the group of highest=selling products, such as analgesics, cough and cold remedies, and gastric remedies.
As Croatia continues to pursue its cost-savings policy, patients will increasingly bear the brunt of reforms and will be expected to pay higher prices for medicines through co-payments and OTC drugs.