Global Pharmaceutical Expenditure Index
Many country sectors audited by IMS showed significant growth, particularly in the quarter-on-quarter analysis, notably:
Argentina, Brazil and Venezuela in the Americas Region
U.A.E and Pakistan in the Eastern Mediterranean
Romania, Russia, Turkey and Ukraine in Europe
Indonesia in S.E. Asia
China in the Western Pacific, and
South Africa (both public and private sectors) and Algeria in the Africa region
In many cases, growth in pharmaceutical expenditure has been matched by evidence of volume growth (for example, in Argentina, Brazil, U.A.E, Pakistan, South Africa [public sector] and China). Such a change also may be the result of higher prices charged for the same product, new product introductions or a shift to more expensive products overall. This is explored in more detail in the next section.
Global Price per Standard Unit Index
Several countries are seeing growth in the Global Price per Standard Unit Index. The Price per Standard Unit Index represents total reported sales divided by total volume for each country for each quarter. Movements in this index are not necessarily a sign of higher prices but may be the result of new product introductions, increases in generic market share and/or government policy as it relates to reimbursement prices and approved margins through the distribution chain.
In the Africa region, South Africa had consistent growth in the price index in the private sector. The weakening of the Rand relative to other currencies certainly has had an effect on pharmaceutical companies in South Africa. Permission was granted at the beginning of 2009 for price increases across the board, after some price increases were also allowed earlier in 2008. There was growth in the price index in the public sector in the early part of 2008, but this has not continued in the latter half of the year.
In the Americas, Argentina, Chile and Venezuela showed consistent increases in the Global price per Standard Unit index through the first quarter of 2009. In Argentina, price rises between 3%-20% were reported in July 2007, and price agreements were negotiated individually between the government and manufacturers.