Best possible pricing
Novo Nordisk offers human insulin to the public health systems in the Least Developed Countries (LDCs), as defined by the United Nations, at prices not to exceed 20% of the average price in North America, Europe and Japan.
Performance 2007
In 2007, Novo Nordisk offered its best possible pricing scheme, as part of the global health initiatives, to all 50 Least Developed Countries (LDCs) as defined by the United Nations. During 2007 Novo Nordisk sold insulin to either governments or to the private market in a total of 36 of the LDCs (see map) at or below a price of 20% of the average prices for insulin in the western world, compared to 34 in 2006. In 12 countries Novo Nordisk is not selling insulin at all, for various reasons. The two LDC countries in which Novo Nordisk does not sell insulin at the policy price are Cambodia and Gambia. The public authorities in both countries have been offered the opportunity to buy insulin at the policy price. The insulin sold in Cambodia and Gambia in 2007 is to the private market. In several cases, the government has not responded to the offer, there are no private wholesalers or other partners with whom to work, or wars or political unrest sometimes make it impossible to do business. While Novo Nordisk prefers to sell insulin at the preferential price through government tenders, the company is willing to sell to private distributors and agents.
While Novo Nordisk prefers to sell insulin at the preferential price through government tenders, it is willing to sell to private distributors and agents. The target is to offer the best possible pricing scheme to the governments of all LDCs. Unfortunately, there is no way to guarantee that the price at which Novo Nordisk sells the insulin will be reflected in the final price on the pharmacist’s shelf. Novo Nordisk works with governments to encourage tenders so that there is a greater chance that the preferential price will benefit the people for whom it is intended.
During the past five years, Novo Nordisk has identified a number of barriers to accessing insulin at the preferential price and has decided to take appropriate measures to tackle these challenges. We will launch pilot projects during 2008 in five different countries: Cameroon, the Democratic Republic of Congo, Guinea-Conakry, Mozambique and Tanzania. Five countries were chosen as the situation in each country varies, thereby requiring different approaches. Novo Nordisk will work with Ministries of Health and relevant business partners in the countries to influence the distribution process so that the preferential prices benefit people with diabetes. Based on the outcome of the pilots, these measures will be applied in the other LDC countries.
Best possible pricing scheme
Novo Nordisk activities to provide access to health in developing countries (as defined by the United Nations)
| Policy on pricing in developing countries/access initiatives | Best possible pricing scheme in Least Developed Countries |
Number of countries supplied with medicines under the best possible pricing scheme | 36 LDCs |
Number of countries eligible for best possible pricing scheme | 50 LDCs |
Number of patients receiving medicines (quantity or description of best proxy/estimate) | Estimated number of people in 38 LDCs that receive insulin from Novo Nordisk: 150.000-390.000 depending on their access to a daily dose |
Number of units sold under best possible pricing scheme in LDCs | 99% of units sold in the LDCs are sold to 36 countries under the LDC best pricing scheme |
Incidence of product | Yes |
Measures taken to address these | Novo Nordisk has decided to monitor but not to take any action against parallel imports from these countries |
Supply arrangements for best | Novo Nordisk has local distributors who take contact with the government as part of normal business |
This page has been reviewed by PricewaterhouseCoopers as part of its assurance of Novo Nordisk’s non-financial reporting. Please refer to Audit and assurance for a full description of the conclusions and the nature of assurance offered.
