Family Planning Clinics

When Norplant was first introduced in the United States in 1990, its high upfront cost made it difficult for federally-funded family planning clinics to provide Norplant to all clients requesting it. Because the demand for Norplant has since leveled off and in some cases declined, the price of Norplant in the United States is no longer a major budgetary issue for these clinics. The subsequent decline in demand for Norplant appears to be due to the fact that it lasts 5 years and is reported to have adverse side effects. Further, women have turned to another more recently introduced injectable contraceptive that does not involve surgery and costs $30 plus physician fees for three months of contraceptive protection. Comparing Norplant's U.S. price to its international prices is difficult because different pharmaceutical companies distribute the implant in the United States and abroad. Wyeth-Ayerst Laboratories, Norplant's U.S. and Canadian distributor, sells Norplant for $365--about $100 more than Roussel Cuclad sells it for in Great Britain. Also, the contents of the Norplant package vary widely among distributors.

GAO found that: (1) when Norplant was first introduced in the United States, its high price made it difficult for clinics to provide Norplant to its clients; (2) Norplant's price is no longer a major budgetary issue for family planning clinics because its demand has leveled off and in some cases declined; (3) distributors in Great Britain sell Norplant for about $100 less than the U.S. and Canadian distributors; (4) Norplant is sold for about $51 in Sweden, but counseling and training materials are not included; (5) in developing countries, Norplant is sold for $23 because of a licensing agreement that limits profits on such sales; (6) the decline in demand for Norplant appears to be due to the fact that it lasts 5 years and is reported to have adverse side effects; and (7) some women have opted to use another injectable contraceptive that does not involve surgery and costs $30 plus physician fees for 3 months of contraceptive protection.