Skip to main content

Table 2 (abstract 17). SWOT analysis of respondents’ view of medicine price transparency practice

From: Abstracts from the 1st JoPPP Conference on Pharmaceutical Policy and Practice

Internal Factor Strengths Weaknesses
Standardize medicine price & reduce price variability Reduce pharmaceutical industries’ profit margin, hence jeopardizing their survival
Provide reference price to consumer and health care providers Remove good price for certain facilities/ health care providers through abolishment of tier pricing and/or bonusing
Increase consumer empowerment in value-based purchasing Increase geographical pricing
External Factors Opportunities Threats
Resolve consumer’s suspicion on industries for setting high mark-up for medicine price Due to reduction in mark-up price, to ensure business survival, other related cost such as GP’s consultation fee may increase
Prevent unreasonable increase in medicine price Availability of reference price to other countries (External Reference Price, ERP) may reduce optimal monopoly price at home/country that needed it, for example, the least developed countries
Strengthen the collaboration between pharmaceutical industries and the government Reduce competition may cause market monopoly
Promote healthy competition between the industries Lack of regulation, increase the risk for price manipulation by the pharmaceutical industries
Ease the process of itemized billing Reduced profit margin, hence reduce investment in R&D, in turn, translate into fewer or less innovative new products
Healthcare providers could focus more to service and treatment care