PHP22 - Towards IRP Common Ground: To What Extent are European Countries Aligned in How they use International Reference Pricing?

Abstract

The EURopean Integrated Price Information Database (EURIPID), a collaboration among European countries focused on exchange of drug pricing data, is seeking to define best practice in international reference pricing (IRP). The group is looking to publish guidance by July 2018 promoting a coordinated approach to IRP. In considering the likelihood a distinctly European form of IRP gains traction, the present analysis explores the extent to which countries in the region possess common ground in their respective IRP policy frameworks. Between January and July 2017, a review of all pharmaceutical pricing regulations was conducted across 62 countries known to be practicing IRP. In addition, in-depth qualitative interviews were completed with payers, policymakers and pharmaceutical industry members in countries where ambiguities were identified. A semi-quantitative analysis was conducted to understand the extent to which countries exhibit alignment across aspects of IRP policy, both globally and within Europe. The European picture is generally reflective of the global one. For multiple discrete aspects of IRP policy, there is no clear majority in the number of countries choosing among particular policy options, such as among the choices for nature of the price benchmark, size of the reference basket, or frequency of re-referencing. The results indicate there is considerable diversity across European countries with regards to current IRP policy frameworks, diversity on par with the global picture. This extent of variation suggests that countries may struggle, at regional European level, to abide by a common set of principles, as the variation undoubtedly reflects divergent economic and political circumstances.