Journal of Pharmaceutical Research

Open Access Open Access  Restricted Access Subscription Access

Business Model Based Pricing Strategy for Pharma Products in Southeast Asian Region


Affiliations
1 School of Management Studies, Vignan University, Vadlamudi PO, Guntur Dist, Andhra Pradesh, India
2 Global Biologics Business Development, Hetero Labs Ltd, Hyderabad – 500018, Telangana, India
 

Purpose To study pharmaceutical product procurement and pricing system in Southeast Asian countries and challenges, factors influencing and industry practices of the pricing.

Methodology Study was carried out based on secondary data published in various journals, domain knowledge of the author and industry experts' inputs on the various business models and pricing practices.

Findings Factors influencing pharmaceutical products pricing in markets under study including the government policy, distribution practices, selling expenses and industry practices.

Research implications This article provides generic observations of product pricing in the context of prevailing regulatory and business environment. Individual strategies differ based on country, company, business model product and market strategy. Further study can be taken up to decide a product pricing model for individual model.

Practical implications Provides basic reference for healthcare system, pharma product procurement practices and pricing strategies for industry and academia.

Social implications Helps Industry and regulatory authorities in rationalising the generic drugs prices and increase the access to affordable medication which will address unmet needs of patients.

Originality It is an original study carried out to understand and review on how industry is arriving at a business model based pricing for pharma products in Southeast Asian countries.


Keywords

Southeast Asia Pharmaceutical Market, Pricing Strategies, Pricing Models for Pharmaceutical Products, Procurement of Pharmaceuticals.
User
Notifications
Font Size


  • Thompson G, Lunn J. South East Asia: A Political and Economic Introduction, House of Commons Library, 14 Dec 2011. Research Paper 11/78.

  • Clear State, Universal Health Coverage in Indonesia. The Economist Intelligence Business Unit Report. 2015.

  • United Nations Development Programme. Human Development Report, 2015:212-215

  • Fuady A. Moving towards Universal Health Coverage of Indonesia, Where is the Position? Erasmus University Rotterdam The Netherlands, 2013:3-8.

  • World Health Organization, World Health Statistics 2015 , 2015.

  • Soewondo P, Anggriani Y. Medicine Pricing Under Indonesia's National Procurement System, Review Article submitted at Nasional Percepatan Pennanggulangan Kemiskinann Programme Indonesia 2015. 2015.

  • SakunPhanit T. Universal Healthcare Coverage through pluralistic approaches: experience from Thailand. Asian Decent work Decade, series: Social security Extension Initiatives in East Asia. 2015: 6-12.

  • Holloway KA. Drug Policy and Use of Pharmaceuticals in Health Care Delivery, Mission Report 17-31 July 2012:10-15.

  • Romualdez Jr, Rosa JFE, Flavier JDA. The Philippines Health System Review, Asia Pacific observatory on Health Systems and Transitions, Health Systems in Transition, 2011;1(2):13-55.

  • Ball D, Tisocki K. Public Procurement of Medicines in Philippines, Health Action International Global. 2008:5-7.

  • Rousseau T. Vietnam Social Health Insurance: Report of Study Visit 21-24 October. 2014.

  • Lee MK, Lan H. Vietnam Pharma Update. 2015:1-2.

  • Jaffar S, Noh KM, Muttalib KA. Malaysia Health System Review, Asia Pacific observatory on Health Systems and Transitions, Health Systems in Transition, 2013;3(1):15-21.

  • Hanah ON, Eisah AR, Rosminah MD. Implementation of GGM programme in Malaysia to strengthen medicines agreement. Ministry of Health Malaysia. 2011:8-13.

  • Ariadi E, Arif MP. Indonesia Healthcare Sector. DBS Group Research. 26 NOV 2015:5.

  • Kelley EJ. Thailand's Pharmaceutical Industry, The American Chamber of Commerce in Thailand. 2013:39-41.

  • Nguyen HT. Vietnam Pharmaceutical Industry Report. Vietin Bank SC. 2014.

  • Pharmaceutical Association of Malaysia. Innovating for a Healthier, Economically Vibrant Nation. Industry Fact Book. 2012.

  • Searles A, Henry D. Pharmaceutical pricing policy. Management Sciences for Health. 2009.

  • Barraclough A, Clark M.Managing Procurement, Management Sciences for Health. 2012.

  • Subbaram NR. What everyone should know about PATENTS? Pharma Books Syndicate, Hyderabad. 2003;1-2.

  • IMS Institute for Healthcare Informatics. Understanding the Pharmaceutical Value Chain. 2014.


Abstract Views: 194

PDF Views: 77




  • Business Model Based Pricing Strategy for Pharma Products in Southeast Asian Region

Abstract Views: 194  |  PDF Views: 77

Authors

A. V. Jayapala Reddy
School of Management Studies, Vignan University, Vadlamudi PO, Guntur Dist, Andhra Pradesh, India
B. Madhusudhan Rao
Global Biologics Business Development, Hetero Labs Ltd, Hyderabad – 500018, Telangana, India

Abstract


Purpose To study pharmaceutical product procurement and pricing system in Southeast Asian countries and challenges, factors influencing and industry practices of the pricing.

Methodology Study was carried out based on secondary data published in various journals, domain knowledge of the author and industry experts' inputs on the various business models and pricing practices.

Findings Factors influencing pharmaceutical products pricing in markets under study including the government policy, distribution practices, selling expenses and industry practices.

Research implications This article provides generic observations of product pricing in the context of prevailing regulatory and business environment. Individual strategies differ based on country, company, business model product and market strategy. Further study can be taken up to decide a product pricing model for individual model.

Practical implications Provides basic reference for healthcare system, pharma product procurement practices and pricing strategies for industry and academia.

Social implications Helps Industry and regulatory authorities in rationalising the generic drugs prices and increase the access to affordable medication which will address unmet needs of patients.

Originality It is an original study carried out to understand and review on how industry is arriving at a business model based pricing for pharma products in Southeast Asian countries.


Keywords


Southeast Asia Pharmaceutical Market, Pricing Strategies, Pricing Models for Pharmaceutical Products, Procurement of Pharmaceuticals.

References