Pharmaceutical Purchasing Research Articles

Predicting pharmaceutical prices. Advances based on purchase-level data and machine learning

BackgroundIncreased costs in the health sector have put considerable strain on the public budgets allocated to pharmaceutical purchases. Faced with such pressures amplified by financial crises and pandemics, national purchasing authorities are presented with a puzzle: how to procure pharmaceuticals of the highest quality for the lowest price. The literature explored a range of impactful factors using data on producer and reference prices, but largely foregone the use of data on individual purchases by diverse public buyers.MethodsLeveraging the availability of open data in public procurement from official government portals, the article examines the relationship between unit prices and a host of predictors that account for policies that can be amended nationally or locally. The study uses traditional linear regression (OLS) and a machine learning model, random forest, to identify the best models for predicting pharmaceutical unit prices. To explore the association between a wide variety of predictors and unit prices, the study relies on more than 200,000 purchases in more than 800 standardized pharmaceutical product categories from 10 countries and territories.ResultsThe results show significant price variation of standardized products between and within countries. Although both models present substantial potential for predicting unit prices, the random forest model, which can incorporate non-linear relationships, leads to higher explained variance (R2 = 0.85) and lower prediction error (RMSE = 0.81).ConclusionsThe results demonstrate the potential of i) tapping into large quantities of purchase-level data in the health care sector and ii) using machine learning models for explaining and predicting pharmaceutical prices. The explanatory models identify data-driven policy interventions for decision-makers seeking to improve value for money.

The impact of centralized band purchasing of pharmaceuticals on innovation of Chinese pharmaceutical firms: an empirical study based on double difference models.

In 2018, China began to gradually promote the pilot policy of centralized band purchasing of medicines. Implementing this policy has resulted in a significant decrease in drug prices. However, there needs to be a clear consensus on the impact and mechanism of action on the innovation of pharmaceutical companies. Therefore. Taking the data of Chinese Shanghai and Shenzhen A-share pharmaceutical listed companies from 2016 to 2022 as a sample, this paper empirically investigates the impact of the centralized banded purchasing policy of drugs on the innovation of pharmaceutical enterprises by using a double difference model and further analyzes the mechanism of its action. The results show that implementing the centralized banded purchasing policy can promote pharmaceutical enterprises' innovation input and output, which is robust under the parallel trend and placebo tests. Further exploring the impact mechanism of the centralized band purchasing policy on pharmaceutical enterprises' innovation, it can be found that it promotes innovation inputs through three channels: government subsidies, enterprise profits, and operating income. In addition, the impact of centralized band purchasing on enterprise innovation is heterogeneous in terms of region, enterprise nature, and scale. Therefore, the positive effects of the centralized band purchasing policy on promoting innovation in pharmaceutical enterprises should be fully recognized, and enterprise heterogeneity should be taken into account when implementing the policy. This study provides empirical evidence on the implementation effect of the centralized banded purchasing policy and provides lessons for continuously optimizing the policy to promote the high-quality development of pharmaceutical enterprises.

Drivers of public procurement prices: Evidence from pharmaceutical markets

This paper examines the determinants of public procurement prices using comprehensive data on pharmaceutical purchases by the public sector in Chile. We first document sizable price differences between buyers for the same product and quantity purchased: the difference between the average prices paid by buyers at the 90th and 10th percentiles of the distribution is 16 percent. Our main results are related to the importance of market structure in explaining the dispersion in procurement prices. We find that market structure explains three times more dispersion than buyer effects. Moreover, we leverage exogenous variation in market structure due to patent expirations to estimate that the entry of an additional seller decreases average procurement prices by 11.7 percent, which is 72 percent of the price differences implied by the gap between the 90th and 10th percentiles of estimated buyer effects. These results suggest that supply-side factors are relevant determinants of public procurement prices and that their quantitative importance may exceed that of demand-side factors previously emphasized in the literature.

Innovation and evaluation of vocational pharmaceutical education system under the 1 + X certificate system in China

Background and objectivesThe 1 + X certificate system, introduced in China in 2019, integrates academic credentials with vocational skill certificates to meet the heightened demand for skilled talents in the growing economy. This study aims to innovate and evaluate the vocational pharmaceutical education system under the 1 + X certificate framework, specifically addressing the gap between theoretical education and workplace requirements. Materials and methodsA retrospective observational approach analyzed 490 pharmacy students over two academic years. The 2021 cohort underwent 1 + X integrated education, while the 2020 cohort followed conventional education. We collaborated closely with industry partners to identify and compile typical job competencies, formulating work projects aligned with industry demands. Combining the skill level standards and assessment content of “1+X Pharmaceutical Purchasing and Sales” and “1+X Pharmaceutical Preparation”, we revised the course standards, incorporating typical work projects into the 2021 pharmacy professional teaching curriculum. This constituted the fundamental content of the 1 + X education reform. Statistical analysis compared course scores and 1 + X certificate examination performance. ResultsThe 2021 cohort, under the 1 + X educational model, demonstrated higher average scores in pharmacy courses, with significant improvements in pharmacology (1 + X vs. Traditional education: 58.40 ± 14.20 vs. 53.44 ± 14.67), clinical pharmacotherapy (72.74 ± 10.28 vs. 63.15 ± 11.03), and pharmaceutical distribution and marketing (79.34 ± 10.96 vs. 67.50 ± 15.82). 1 + X certificate pass rates and satisfaction with the model were also higher than the 2020 cohort. ConclusionThe 1 + X certificate system is useful for developing talent in Chinese vocational education, effectively integrating assessments with industry standards. Future research should aim at evaluating long-term outcomes and improving quantitative skills assessments for enhanced effectiveness.

Exploring Bangladesh‟s Pharmaceutical Purchase Trends: Perspectives from Periodicity Analysis and Association Rule Mining on Retail Transactions

This investigation explores consumer pharmaceutical purchasing behaviors using an extensive data set from Bangladeshi medical supply vendors. Over 29 months, we analyzed 30,947 transactions involving 3,016 unique items. By employing association rule mining, we identified common product purchase combinations and recurrent patterns reflecting customer behavior and market dynamics. We thoroughly analyzed association rules and periodic items to understand how varying support and confidence levels impact rule formation and product recognition. As support levels increase from 0.5% to 5%, fewer but more significant rules emerge, with a fixed support level at 0.75% and confidence at 10%, demonstrating a trade-off between rule quantity and significance. A category-specific analysis shows that higher support levels lead to fewer rules, indicating a greater acceptance of specific products. Through customized algorithms, this study uncovers patterns and trends in pharmaceutical purchases, providing insights that could influence marketing tactics, policy decisions, and stock management in the healthcare retail industry. These results offer a comprehensive understanding of consumer behavior and market demands in a vital sector of Bangladesh‟s economy.

A Secure System for Buying and Verifying the Authenticity of Drugs Using Blockchain Technology

In the healthcare sector, ensuring the safety and legitimacy of drugs is a top priority. Counterfeit pharmaceuticals are a major problem for the industry, as they not only cause financial losses but also endanger public health and safety. These fake medications are hazardous or inefficient, putting lives at risk. The dissemination of fake medications has not been stopped by the use of conventional techniques for confirming drug legitimacy. This project presents a novel way to improve the security and authenticity of pharmaceutical purchases by utilizing blockchain technology. The key focus of this innovative project is to devise a blockchain-based secure system that will enable drug producers, distributors, and consumers to safely check the legitimacy of pharmaceuticals and track their provenance throughout the supply chain. The utilization of decentralized and immutable properties of blockchain technology makes it possible to create a transparent and impenetrable platform for documenting and confirming drug-related transactions. The blockchain will securely store every stage of the pharmaceutical supply chain, from production to retail, establishing a transparently traceable framework. Implementing a secure blockchain-based system for drug authentication helps effectively build trust within the pharmaceutical supply chain, protect consumers from counterfeit drugs, and make a positive impact on the overall improvement of public health. The transparency and security offered by blockchain technology in drug transactions have the potential to revolutionize the pharmaceutical industry, fostering a more reliable environment for drug procurement and distribution.

Pharmaceutical Purchasing: a Review of the Landscape and Implications for Antidotal Therapies.

The management of the poisoned patient often requires the utilization of uncommonly used pharmaceutical interventions. These interventions can be associated with significant costs to both the patient and treating institution. Pharmaceutical supply shortages and issues with accessibility of antidotal therapies complicate the management of many toxic exposures. These challenges are an inherent property of the pharmaceutical purchasing infrastructure in the United States, which is a complicated network of public and private intra-institutional agreements. The cost and availability of any given therapy is dependent on the individual contracting agreements between the treating institution, payer, pharmacy benefit manager, manufacturer or wholesaler, and in some cases a specialty pharmacy. Small or remote hospitals may experience greater challenges related to insufficient patient volume to achieve predicable prescribing patterns of rare and expensive medications, necessitating consignment purchasing arrangements. Although pharmaceutical costs are the focus of recent legislative attention, these reforms are not expected to significantly alter the cost or availability of antidotal therapies.

Healthcare Payer Perspectives on the Assessment and Pricing of Oncology Multi-Indication Products: Evidence from Nine OECD Countries.

New pharmaceuticals are increasingly being developed for use across multiple indications. Countries across Europe and North America have adopted a range of different approaches to capture differences in the value of individual indications. The three aims of this study were (i) to review the price-setting practice over the past 5 years for multi-indication products across England, France, Italy, Spain, Belgium, Switzerland, Turkey, Canada and the USA; (ii) to assess the impact of current practices on launch strategy; and (iii) to identify issues in the implementation of indication-based pricing. Ten current and former members of health insurance organisations, healthcare payer organisations or health technology assessment agencies with expertise on pharmaceutical purchasing were invited to participate in semi-structured interviews. Interview transcripts were imported into NVivo 12 for thematic analysis. The majority of countries studied require full assessments upon launch of a new indication. Five different approaches to pricing were identified: weighted pricing, differential discounting, mandatory discount, price anchoring and free pricing. Manufacturers show a tendency to launch first in niche indications with high unmet need to achieve a high price. Stakeholders from England, France, Italy, Belgium and Switzerland consider their current system fit for purpose, while other countries expressed concern over the administrative burden of monitoring products at indication level. Given the high administrative burden, it is questionable whether indication-based pricing would provide additional public benefit above and beyond current weighted dynamic single pricing and differential discounting practices for multi-indication products.

Consumer Perception Towards Online Pharmacy And Offline Pharmacy With Reference To Mumbai City

E-commerce investment in medical and pharmaceuticals is skyrocketing, which is assisting in the growth of either the online and offline supply of options for acquiring drugs to customers. This measure would ultimately assist the Indian drug industry in better meeting the demands of customers. The convenience given by e-medicines is allowing patients to shift from offline to online ordering modalities, particularly with the increased usage of the World Wide Web currently. Although a greater proportion of people, such as the elderly, disabled, and those living in remote areas, have begun to use this advanced practise on a regular basis, there remains a sizable segment of society that is still reliant on the traditional method of obtaining meds from drug stores and relies on it. Certain cases of fraudulent and inadequate information regarding pharmaceuticals and medicines being shown on these sites of "Pharmacies" and apps have been detected, making them unethical. Furthermore, it is clear that Internet prescription cannot replace the real physician's care of the patient, since patients are still at danger of significant medication interactions and adverse effects while using the online treatment approach.
 Purpose: Study was done to investigate consumer perceptions about online and offline pharmacies in Mumbai, India, and if there is any danger involved with purchasing drugs from all these sources.
 Design/ Methodology: The survey looked at people's attitudes about online and traditional pharmacies. Which of these do individuals in India tend to favour for their frequent pharmaceutical purchases? The investigation is conclusive in nature, and a casual research strategy was employed to assess people's behaviour and preferences regarding online and physical pharmacies. The research also included a qualitative component since the behaviour of buyers/consumers was examined. The descriptive component of the research is there just to analyse and comprehend the consumer's behaviour and the variables that lead to this choice.

Application of E-Pharmacies in India

Consumer convenience and access are improved through E-pharmacy. This will mostly benefit chronic old patients living in nuclear families, as well as people who are unable to travel to a pharmacy. E-pharmacy also offers competitive prices, making drugs more affordable to those who are less well-off. Consumers in India focused on staying indoors after the COVID-19 lockdown was announced, which forced people to go digital, whether to pay bills or contact doctors. There are no exceptions when it comes to e-pharmacies. Brick-and-mortar pharmacies' home delivery of medicines has also increased. The aim of this paper is to discover and experimentally validate the many characteristics that influence customer acceptance, usage, and intent to suggest E-pharmacy for pharmaceutical purchases. This paper also aims to identify the factors that influence customers on choosing between the various e-pharmacies (PharmEasy, Tata 1mg, Net Meds, Apollo 24x7) providing their service in the market. For this research, the information from 106 respondents was collected and it was found that factors like ease of buying, discounts, user experience, customer care, and availability of the medicines/healthcare products influences their buying behaviour.

Income gradient of pharmaceutical panic buying at the outbreak of the COVID-19 pandemic.

We analyze the timing, magnitude, and income dependence of pharmaceutical panic buying around the outbreak of the COVID‐19 pandemic in Hungary. We use district‐level monthly and daily administrative data on detailed categories of pharmaceutical purchases, merge them to income statistics, and estimate multilevel panel models. Our main results are as follows. First, the days of therapy (DOT) of pharmaceutical purchases increased by more than 30% in March 2020, when major lockdown measures were announced. This pattern holds for almost all categories of pharmaceuticals. Second, shortly after the panic reactions, the aggregate amount of pharmaceutical purchases returned to their preshock levels; however, the frequency of pharmacy visits decreased. Third, the panic buying reaction was significantly stronger in richer geographical areas, where—according to the daily data—people also reacted earlier to the pandemic‐related news. Overall, the results suggest that panic buying of pharmaceuticals can have detrimental effects on vulnerable populations.

Sophisticated Purchasing of Pharmaceuticals

Sophisticated Purchasing of Pharmaceuticals

When are Pharmaceuticals Priced Fairly? An Alternative Risk-Sharing Model for Pharmaceutical Pricing.

The most common solutions to the problem of high pharmaceutical prices have taken the form of regulations, price negotiations, or changes in drug coverage by insurers. These measures for the most part transfer the burden of drug expenditures between pharmaceutical companies and payers or between payers. The aim of this study is to propose an alternative model for the relationship between the main stakeholders (the pharmaceutical companies, third party payers, and the public) involved in the price setting and purchasing of pharmaceuticals, one that encourages a more cooperative approach. We draw from principles of ethics and health economics and apply them to the context of the pharmaceutical industry. The model prioritises two objectives, (1) to make drugs financially accessible to the patients who need them, and (2) to keep pharmaceutical companies viable and profitable. It is centered around the sharing of financial risk between the main stakeholders, which we describe as 'enlightened risk sharing'. After establishing the foundations of this model, we expand on the type of policies that can follow these principles with current day examples.

Influence of leftover antibiotics on self-medication with antibiotics for children: a cross-sectional study from three Chinese provinces

ObjectivesTo investigate leftover antibiotics and their influence on self-medication with antibiotics (SMA) for Chinese children, and further explore the different influences of leftovers from two main sources: previous prescriptions and...

Current Threats to Maintaining a Secure Pharmaceutical Supply Chain in an Online World.

Background: Maintaining integrity of the pharmaceutical supply chain is critical to providing medications that are free from adulteration (counterfeit, substandard or unapproved medications), making them safe for patient use. Purchasing pharmaceuticals through the Internet can be associated with a risk of receiving adulterated medicines. Objective: The objective of this study was to review the current threats to maintaining a secure pharmaceutical supply chain, specifically focused on Internet-based procurement of medications. Methods: A review of the literature was conducted along with collating important up to date resources and other publications that provide foundational information to understanding the risks and prevention strategies for online purchasing of pharmaceuticals. Conclusion: The information provided in this article helps to properly inform pharmacy leaders to the resources available to protect against the risks of on-line purchasing of pharmaceuticals.

Impacting Health through Cross-Border Pharmaceutical Purchases

ABSTRACT Annually, retirees known as Winter Texans travel to spend the winter along the Texas/Mexico border and while there, many purchase medicine in Mexico. However, strategies that are used when purchasing Mexican medicine and the health implications of doing so have not been adequately explored. The results of the study we report illustrate that Winter Texans are knowledgeable about their healthcare and act more as choice-making consumers than patients seeking care. Furthermore, the use of Mexican medication did not increase rates of adverse drug events or decrease health-related quality of life scores.

Selected models and the classification of health care systems

Health care is a fundamental element of each country’s social policy. It is mainly organised and implemented through the adoption of a certain political framework (defined objectives and priorities), strategic and operational management (planning, organising, motivating and controlling), and generation of resources (e.g. defined activities of collection and distribution of financial resources, training of medical professionals, and the purchase of technology and pharmaceuticals). These principles are either formulated on the basis of already functioning health care models or bespoke models are being created. An important element of a given model is to define its mission (the reasons for its creation and operation), while such elements as the functions, objectives, resources and methods of operation attribute to its individual properties and values. Health care systems may be organised differently. Their main distinguishing features are the ownership (public, private or mixed), sources of financing (public, private or mixed) and management (centralised, dispersed), or they can be structured with regard to political aspects (single-centric, multi-centric and pluralistic). This article, based on the latest scientific developments, presents the historical outline of the selected models for health care systems and the new concepts regarding their classification. The article also offers theoretical analyses of those health systems, which have become the models for others. The aim of this article is to present the classification and the characteristics of the selected models for health care systems, both from the historical perspective and the perspective of those currently in operation. The documents analysis method was used, which included the leading positions in the Polish and foreign literature, in the field of the issues addressed, as well as the literature published by the related institutions. This topic is already being discussed within the literature of the subject, nevertheless it is still relevant and, due to its undeniable importance, deserves further examination because it directly or indirectly concerns every human being.

Alternative strategies for investing in corporate R&D (on the example of the global pharmaceutical industry)

During the last ten years, the largest pharmaceutical manufacturers significantly changed their approaches to the formation of their own strategies for capturing and retaining the leading positions in global markets. One of the key prerequisites was a decline in the return on investment in R&D: if in 2010 among the top 12 pharmaceutical companies of the world this indicator was 10,1%, then in 2017 it fell to 3,2%. At the same time, the cost of developing and launching new medicines has increased: from $1,2 billion to $2 billion in 2010–2017.The article analyzes the main reasons for the transformation of the strategies of the Big Pharma companies. It has been suggested that, in the context of a decline in payback in R&D, increased competition, a fall in public expenditure on the purchase of pharmaceuticals, and tightening of regulatory requirements, it is advisable for domestic companies to reorient the creation of corporate venture funds and investing in start-ups, and actively use the mergers and acquisitions strategy.

PCN52 - Budget Impact Analysis of Enzalutamide for the Treatment of Metastatic Castration-Resistant Prostate Cancer Patients Progressing after Docetaxel in the Mexican Public Healthcare System

In the Mexican public healthcare (PHC) system, there are few alternatives for the treatment of patients with metastatic castration-resistant prostate cancer (mCRPC) progressing after treatment with docetaxel. However, healthcare payers are interested in quantifying the budget impact of these therapies. This analysis estimates the budget impact of enzalutamide as an alternative treatment for PHC patients in the Mexican Social Security Institute (IMSS). A model was developed to assess the budget impact of enzalutamide for the treatment of patients with mCRPC after docetaxel progression. Epidemiological data from the National Cancer Institute 2017, Lopez 2016, and Drake 2016 were used to estimate the number of patients in Mexico (i.e. 12 million men aged >40 years). Dosing, administration, duration of therapy, and adverse event rates were based on product labels and published clinical trial results. Drug costs were obtained from local direct medical costs and sales pricing files. Costs of administration and monitoring were obtained from the IMSS website and the published literature. Market shares were estimated for each comparator before and after adoption of enzalutamide. The incremental aggregate budget impact, per patient per year, was calculated. The annual cost of one patient treated with enzalutamide in the Mexican PHC system was estimated at MX$528,862. The epidemiological model predicted that 39 patients would be eligible for treatment with enzalutamide in 1 year, resulting in an overall annual budget impact of MX$20.6 million, which represents a 0.04% impact on the total annual budget for pharmaceutical purchases. Due to the absence of a therapeutic alternative for patients with mCRPC after progression on docetaxel, the introduction of enzalutamide is an affordable option for IMSS in Mexico.

Moving towards a better path? A mixed-method examination of China’s reforms to remedy medical corruption from pharmaceutical firms

ObjectivesFew studies have systematically examined the effects of the existing regulations for alleviating corruption in China. This study assesses the effectiveness of China’s reforms to curb medical corruption.MethodsWe used mixed...