The public health of a country may face significant challenges in ensuring access to vital medicines at affordable prices. In this context, the arrival of international providers like North Life Pharma can make a significant difference in reducing healthcare system expenses.
The case of raltegravir in Peru or how to procure a medication at half the price
Between 2019 and 2020, North Life Pharma supplied a crucial medication to Peru: raltegravir (for treating human immunodeficiency virus (HIV) infection). And it did so for approximately half the price offered by the only registered provider in the country.
This move allowed for significant savings in the Peruvian healthcare system by providing the same product at more competitive prices, representing a major step forward in exploring more competitive international options.
Indeed, according to the non-profit association AIS Peru, “International purchases, in the case of raltegravir, have regulated the price in the national market, generating competition that pushed down the price of the brand that was in a monopolistic situation.”
How international purchases enable cost reduction
The case of delivering the medication raltegravir at a significantly lower price in the Peruvian healthcare system is a clear example of how international purchases can offer more advantageous prices for countries with a limited supply of local providers. This situation is especially relevant when there is little competition from registered products, leading to higher prices from a single provider and a greater challenge in ensuring access to essential treatments.
How do international purchases allow countries to achieve more competitive prices and offer products at a lower cost? This is due to different factors, such as economies of scale, logistics efficiency, and, above all, increased competition. These benefits are passed directly to patients and the country’s health system, thereby reducing the financial burden and facilitating access to treatments that might otherwise be prohibitive.
In addition to the direct impact on prices, the presence of international providers can also put pressure on local distributors to reconsider their pricing policies. Also, competition in the drug market can lead to greater transparency and efficiency in the supply chain, which eventually translates into better prices for local drugs. Thus, this dynamic benefits not only patients but also the health system as a whole, freeing up resources that can be directed to other areas of need.
North Life Pharma, an international medicine supplier
North Life Pharma is an international provider with a recognized operational model in more than 10 countries around the world, offering a reliable and flexible supply of medicines. With the mission of providing safe and effective medications at affordable prices, North Life Pharma has three main objectives: to offer access to medicines, reduce their costs, and enhance the well-being of the population.