Health

Consumer health: time for a regulatory re-think?

May 26, 2016

Global

May 26, 2016

Global
Martin Koehring

Senior Manager for Sustainability, Climate Change and Natural Resources & Head of the World Ocean Initiative

Martin Koehring is senior manager for sustainability, climate change and natural resources at (part of The Economist Group). He leads Economist Impact's sustainability-related policy and thought leadership projects in the EMEA region. He is also the head of the, inspiring bold thinking, new partnerships and the most effective action to build a sustainable ocean economy.

He is a member of the Advisory Committee for the UN Environment Programme’s Global Environment Outlook for Business and is a faculty member in the Food & Sustainability Certificate Program provided by the European Institute for Innovation and Sustainability.

His previous roles at The Economist Group, where he has been since 2011, include managing editor, global health lead and Europe editor at The Economist Intelligence Unit.

He earned a bachelor of economic and social studies in international relations from Aberystwyth University and a master’s degree in diplomacy and international relations from the College of Europe.

Contact

Non-prescription, or over-the-counter (OTC), drugs are an essential part of the most widespread element of healthcare provision: self-care. Their use is substantial, as reflected in the size of the market for them: US$111bn in 2014 worldwide, or about 11% of all pharmaceutical sales. Moreover, volume and income from sales are increasing steadily as the market has been growing particularly in emerging markets.

This greater use of OTC pharmaceuticals is consistent with the policy of many governments to increase the role of patients in their own health, improve access to medications where consistent with safety, and to reduce costs to health systems. 

This study looks at an important impediment to continued growth of the sector: an inconsistent regulatory environment. Although different aspects of the issue have been addressed at multilateral and regional levels, progress has been limited and slow – despite the possible benefits to health and economic outcomes a more coherent market could bring.

Drawing on substantial desk research and in-depth interviews with 15 experts from industry bodies, regulators, academia and patient groups, this study looks at efforts at regulatory harmonisation, the barriers they have encountered, and prospects for the future. Its key findings include:

  • Non-prescription drugs face regulation across a wide range of areas, in many of which the costs and benefits remain poorly understood.
  • Regulatory regimes are highly inconsistent between countries, but research on the impact of the resultant market fragmentation is lacking.
  • Regulatory harmonisation efforts have tended to be tangentially and partially relevant for non-prescription pharmaceuticals rather than directly focused on them.
  • Effective harmonisation requires a holistic approach, a similar level of regulatory capacity and an understanding of the role of professionals and patients in care.
  • There is little interest in greater regulatory harmonisation in this area probably because there is little agreement on what harmonisation should mean.

Enjoy in-depth insights and expert analysis - subscribe to our Perspectives newsletter, delivered every week