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Main drivers of diabetes pharmaceuticals expenditures: evidence from OECD countries and Iran

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Abstract

Purpose

This study aimed to identify the impact of prominent drivers on drug expenditure for diabetes.

Method

Following the examination of previous studies, this study identified possible factors contributing to diabetes pharmaceutical expenditures. The explanatory variables for the study were the median population age, access to innovative drugs, GDP per capita, prevalence, price, and consumption of diabetes drugs. Then, to estimate the per capita expenditure among diabetic patients, this study developed the panel data model and two time-series regression models for OECD countries and Iran, respectively.

Results

In the panel data regression model, R2 was 0.43. The influence of the age, prevalence, consumption volume and GDP per capita coefficients were + 1.79, + 0.704, + 3.86057, + 0.00054, respectively. Also, the probability level of all variables was less than 0.05. In Iran’s comparative time-series regression model, R2 was 0.9, and the only significant influence coefficient was the age (β=+0.91). In the another model for Iran, R2 was 0.99, the influence coefficient of age was + 0.249, the prevalence was + 0.131, innovation was + 0.029, and the price was + 0.00054; all the probability levels were less than 0.05.

Conclusion

Pharmaceutical per capita expenditure is affected by several factors. These factors are not the same in various counties. Passing a judgment on drug utilization only based on pharmaceutical per capita expenditure cannot be perfect. Also, judging whether the per capita drug expenditure in one country is desirable without attention to the affecting factors and only relying on the value of utilized medicines is defective.

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Data availability

All raw data are available in the formal sources. In addition, the datasets used and/or analyzed during the current study available from the corresponding author on reasonable request.

Abbreviations

DALY :

disability-adjusted life year

DID :

Defined daily Dose per 1000 people per day

DM :

Diabetes Mellitus

GDP :

Gross domestic product

GDP/C :

per capita Gross domestic product

IDF :

International Diabetes Federation

LMICs :

low- and Middle-Income Countries

NCDs :

Non-Communicable Diseases

OECD :

Organisation for Economic Co-operation and Development

PPP :

Purchasing Power Parity

USD :

United States dollar

YLD :

Years Lived with Disability

YLL :

Years of Life Lost

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Authors and Affiliations

  1. Faculty of Pharmacy, Shahid Beheshti University of Medical Sciences, Tehran, Iran

    Zahra Akbarpour

  2. Health Policy Research Center, Institute of Health, Shiraz University of Medical Sciences, Shiraz, Iran

    Leila Zarei

  3. Department of Economics, Shahid Beheshti University, Tehran, Iran

    Vida Varahrami

  4. Department of Pharmacoeconomics and Pharma Management, School of Pharmacy, Shahid Beheshti University of Medical Sciences, Tehran, Iran

    Farzad Peiravian & Nazila Yousefi

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Contributions

NY and FP made substantial contributions to the conception and design of the work; ZA, VV, NY, and FP made substantial contributions or the acquisition, analysis, or interpretation of data; ZA and LZ drafted the manuscript. All authors revised the manuscript critically and approved the final version and agree to be accountable for all aspects of the work in ensuring that questions related to the accuracy or integrity of any part of the work are appropriately investigated and resolved.

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Correspondence to Nazila Yousefi.

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The protocol for this study was approved by the ethics committee of Shahid Beheshti University of Medical Sciences (approval code: IR.SBMU.PHARMACY.REC.1398.116). The method weas carried out in accordance with relevant guidelines and regulations.

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Akbarpour, Z., Zarei, L., Varahrami, V. et al. Main drivers of diabetes pharmaceuticals expenditures: evidence from OECD countries and Iran. J Diabetes Metab Disord 22, 431–442 (2023). https://doi.org/10.1007/s40200-022-01161-6

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