Median price ratio

The median price ratio (MPR) is the ratio given by dividing the median local unit price of a medication by the median international reference unit price, usually from the International Medical Products Price Guide.[3]: 220 [1] This measure was created in 2003 by the Health Action International (HAI) and World Health Organization (WHO) as a standard measure to facilitate national and international comparisons of drug prices.[1]: 41 

Originator brand versus lowest generic prices for Metformin 500 mg cap/tab. Median price ratio of the latest lowest generic price or originator brand price over the MSH international reference price for Metformin 500 mg cap/tab, according to WHO/HAI methodology. Prices below 100% are cheaper than the international reference price.[1][2]
Variability of lowest prices for Metformin 500 mg cap/tab. Median price ratio of the latest lowest generic price over the MSH international reference price for Metformin 500 mg cap/tab, according to WHO/HAI methodology in 2015 or latest data. Prices below 100% are cheaper than the international reference price.[1][2]

In the WHO/HAI systematic methodology, the same provider of international reference unit price "must be used for all medicines surveyed – global, regional and supplementary", to ensure a consistent basis for comparison.[1]: 38 

Some authors criticized the MPR, as it can be skewed by the international reference price. For example, a 10% MPR for a $10 reference price yields an absolute price variation of $1, whereas for a $200 reference price the variation would be $20.[4] To solve this issue, the WHO/HAI recommend to check the international reference price when very high or low MPR variations are observed.[1]: 41 

The MPR has been used in several studies investigating the availability and variation of medication prices,[5] and the effects of various medication pricing policies.[6]

The HAI maintains a regularly updated database of worldwide MPR surveys.[1]: 7 [2]

References
  1. Measuring medicine prices, availability, affordability and price components. World Health Organization & Health Action International. May 2016. p. 123, 289.
  2. "Database of medicine prices, availability, affordability and price components". www.haiweb.org. Health Action International.
  3. Raju, Priyanka Konduru Subramani (2019). "Chapter 6.2 - WHO/HAI Methodology for Measuring Medicine Prices, Availability and Affordability, and Price Components". Medicine Price Surveys, Analyses and Comparisons (Monograph). Academic Press. pp. 209–228. ISBN 978-0-12-813166-4. Retrieved 27 November 2019.
  4. Ridley, David B. (1 July 2005). "Price differentiation and transparency in the global pharmaceutical marketplace". PharmacoEconomics. 23 (7): 651–658. doi:10.2165/00019053-200523070-00002. ISSN 1179-2027. PMID 15987224. S2CID 21002818.
  5. Mardetko, Nika; Kos, Mitja; Vogler, Sabine (4 March 2019). "Review of studies reporting actual prices for medicines". Expert Review of Pharmacoeconomics & Outcomes Research (Systematic review). 19 (2): 159–179. doi:10.1080/14737167.2019.1552137. ISSN 1473-7167. PMID 30468097. S2CID 53712139.
  6. Rida, Nada Abdel; Ibrahim, Mohamed Izham Mohamed; Babar, Zaheer-Ud‐Din; Owusu, Yaw (2017). "A systematic review of pharmaceutical pricing policies in developing countries". Journal of Pharmaceutical Health Services Research (Systematic review). 8 (4): 213–226. doi:10.1111/jphs.12191. ISSN 1759-8893. S2CID 80486443.
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