Pharmaceutical Pricing Policy in Jordan
The JFDA has responsibility for setting the price of medicines for sale in community pharmacies (private sector). Article 11 of the Drug and Pharmacy Law determines the membership of the pricing committee that includes the director of the drug directorate in the JFDA, the director of supply and purchasing, the head of the pricing department, an internist, a pharmacist specialist in pharmacology or clinical pharmacy and two experts (one being an expert in cost accounting). While the pricing committee is involved in the determination of the price of medicines distributed through community and hospital pharmacies, it is not involved in the pricing of medicines obtained through tenders [28, 29].
Originator Brand Pricing in Jordan
In Jordan, according to the pricing instructions approved by the Prime Minister, the price of a NCE (originator brand) is allocated based on the lowest price resulting from one of the following five different methodologies .
- • If the goods are on a Cost, Insurance and Freight (CIF) basis, the drug price to the Jordanian public is computed from the cost price. This is on the basis of the factory-listed price from the invoice issued (from the party designated to issue invoices) plus the addition of customs duties, bank’s charges, insurance, clearing and inland transportation (plus the profits of the wholesaler, pharmacy and their administrative costs). If the basis of shipment is Free On Board (FOB), the shipping costs will be added to the above .
- • The drug price to the Jordanian public is computed from the cost of the imported drug on the basis of the public price in the country of origin after deducting the value added tax (VAT) there, if applicable, and after deducting the profits of wholesalers and retailers there and adding the shipping costs, bank’s expenses and charges, insurance clearing and inland transportation (plus the profits of the drug store and pharmacy and their administrative costs) .
- • The median price resulting from the prices of the public in the following countries: UK, France, Spain, Italy, Belgium, Greece, Netherlands, Australia, Cyprus, Hungary, Ireland, New Zealand, Portugal, Czech republic, Croatia and Austria. In the event that it is not priced in all of those countries, the median price where available in not less than four countries is used .
- • The price computed from the export price to the Saudi market. As for any unregistered drug in Saudi Arabia, its price in Jordan will be reviewed upon its registration there. The agent is committed to provide the JFDA with the export price to Saudi Arabia within a period not exceeding 4 months from the date of pricing it there .
- • If the drug is registered and priced in the country of origin only and the average median public prices from the countries above become impracticable, then it is priced on the basis of drug prices having close chemical composition and/or therapeutic effect .