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Policy-Making Without Regulation
A Report on Changes in Medicine Prices
We review a recent report by Siavash Eftekhari, in which he states:
“In recent years, changes in the prices of pharmaceutical products have not followed any clear or regulated pattern. Policymakers have often adopted non-transparent and sometimes arbitrary approaches.”
In analyzing the price increases, a comparison of drug price trends with macroeconomic indicators, such as general inflation and currency exchange rates, shows that the rise in medicine prices has not aligned with the country’s overall economic conditions, and in some cases, has been significantly lower than expected, especially when compared to other essential goods like food.
Establishing a transparent framework based on sound economic principles for drug price policy is essential. The instability in current policies has not only enabled some producers to raise prices disproportionately, but has also put more critical sectors of the pharmaceutical industry at risk.
