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New Delhi, August 18, 2025 – A new international study has revealed that people in low- and middle-income countries (LMICs) may be paying disproportionately more for the same essential medicines compared to those in wealthier nations—once differences in local purchasing power are taken into account.
Researchers from Brown University in the US and the London School of Economics and Political Science in the UK analyzed prices for around 550 medicines across 72 countries in 2022. The findings, published in the JAMA Health Forum, challenge the common assumption that drugs are always more affordable in poorer countries.
While nominal prices—the sticker prices seen in stores—were indeed higher in richer countries, the actual cost relative to wages and purchasing power proved to be much heavier for patients in poorer nations. For instance, India’s nominal drug prices ranked among the lowest globally, but adjusting for purchasing power moved India to a middle tier (29th out of 72), exposing greater relative expense. Pakistan, with the world’s lowest nominal drug prices, saw actual costs for consumers nearing those in Germany when purchasing power was considered.
The study also revealed stark variations in drug affordability: for a month’s supply of tenofovir disoproxil—used to treat Hepatitis B and HIV/AIDS—an Indian worker earning minimum wage would need to work about 10 days to cover costs out of pocket. Countries in Europe and the Western Pacific had the best affordability, while Africa and Southeast Asia lagged behind.
Essential medicines for mental and behavioral disorders, as well as cardiovascular diseases, carried the highest prices globally, while drugs for hepatitis B and C were at the lower end of the spectrum. Usage patterns echoed socioeconomic divides, with the average person in Europe consuming 634 doses of essential medications in 2022, compared to just 143 in Southeast Asia.
“Our results show that while drugs may have a lower nominal price in low- and middle-income countries, they may still be less affordable when considering the relative purchasing power of local currencies,” the study authors wrote.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Patients are advised to consult healthcare professionals before making any decisions based on drug affordability or availability.
Reference: Study summarized from coverage by Dinamalar, August 18, 2025.
