PNS175 THE IMPACT OF RE-PRICING POLICY ON THE PRICE OF ANTI-CANCER DRUGS FROM 2007 TO 2017 IN SOUTH KOREA: A RETROSPECTIVE STUDY

Abstract

This study aims to observe the price reduction of anti-cancer drugs retrospectively, adopted by re-pricing policy, and frequency of that in South Korea. We built the data based on the price log of anti-cancer drugs from 2007 to 2017. We reviewed a variety of sources to determine which mechanism activated a reduction of each product. The frequency and amount of reduction per product were investigated. To explore the relative importance of specific characteristics on reduction rates, we conducted a regression analysis. Total of 439 products was identified. The number of price-reduced drugs was 245 (55.8%) for an average of 5.1 years. The price decreased by an average of 15.89%, and the average reduction rate per year was -4.56%. The most frequent price-cut was due to the actual transaction pricing, but its impact on the reduction rate was the smallest (-4.00%). The highest reduction rate per event was the price-adjustment at the timing of generic approvals (-16.29%) and the policy change for off-patent drugs’ pricing in April 2012 (-18.15%). In terms of total reduction, the most relatively important characteristic was whether being the originator or the generic drug (50.9%) and annual sales followed it (12.9%). The Listing year contributed to the annual reduction rate most (64.1%) and whether being the originator or the generic drug was also slightly important (14.1%). The repricing mechanism affects the price of anti-cancer drugs in a variety of ways. It is conclusive that statutory adjustments due to Actual transaction price and patent-off are the most active and influential on price change. The most critical factors driving price change are whether to be an originator or not and when to have been listed. To be more efficient and reconciled pricing system, it needs to reinforce an autonomous or competitive mechanism and value assessment.