ArticleCost effectiveness and resource allocation : C/E2025
Do medicine prices reflect therapeutic value? Evidence from a comparison of the United Arab Emirates and Australia.
Article in Cost effectiveness and resource allocation : C/E, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.
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Abstract
backgroundThe United Arab Emirates (UAE) pharmaceutical market is estimated to reach 4.7 billion by 2025. Although several price reduction initiatives have been implemented, no prior study has systematically compared UAE medicine prices with those of a developed country. This study aimed to compare the pharmaceutical prices between UAE and Australia.
methodsRetail medicine price data were obtained from publicly available database sources: Australian Pharmaceutical Benefits Scheme (PBS) and UAE Ministry of Health and Prevention. Medicines in the UAE that cost more than twice their Australian counterparts were further assessed for their therapeutic benefit using the France Haute Autorite de Sante Amélioration du Service Médical Rendu (ASMR) rating. Price ratios were calculated, log-transformed, and analysed using linear regression to examine associations with ASMR rating, drug class, and drug category (originator, biosimilar, generic).
resultsPrice data were analyzed for 301 medicines (286 originators, 14 biosimilars, one generic). 3.7% of the drugs were cheaper, 12.0% were similarly priced or up to double, and 84.4% were more than double the cost in Australia. ASMR distribution showed 2.3% as ASMR I, 5.6% as ASMR III, 11.0% as ASMR IV, and 43.9% as ASMR V. Prices in the UAE remained substantially higher than in Australia, even after purchasing power parity adjustment. Originators drove the largest disparities, while biosimilars were over twice Australian benchmarks. Higher therapeutic benefit was not consistently associated with smaller price gaps.
conclusionsMedicine prices in the UAE were substantially higher than in Australia, largely driven by low-benefit drugs. Findings highlight a persistent misalignment between therapeutic value and pricing, underscoring the need for stronger value-based pricing and affordability policies benefits.
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