Determinants of branded prescription medicine prices in OECD countries

Health Economics, Policy and Law

Volumn 6, Issue 3, 2011, Pages 337-367

  Kanavos, Panos G ^a   Vandoros, Sotiris ^a  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

ANTICONVULSIVE AGENT; ANTIDEPRESSANT AGENT; ANTIINFECTIVE AGENT; ATYPICAL ANTIPSYCHOTIC AGENT; BIGUANIDE DERIVATIVE; BUDESONIDE; CALCIUM ANTAGONIST; CANDESARTAN; DIPEPTIDYL CARBOXYPEPTIDASE INHIBITOR; DONEPEZIL; FLUTICASONE; FLUTICASONE PROPIONATE PLUS SALMETEROL; GALANTAMINE; GENERIC DRUG; HYDROXYMETHYLGLUTARYL COENZYME A REDUCTASE INHIBITOR; LOSARTAN; METOPROLOL; MONTELUKAST; OPIATE; PRESCRIPTION DRUG; PROTON PUMP INHIBITOR; RANITIDINE; TIOTROPIUM BROMIDE; VALSARTAN;

ARTICLE; AUSTRALIA; AUSTRIA; BELGIUM; CONTROLLED STUDY; DRUG CONTROL; DRUG COST; DRUG MARKETING; EUROPE; FRANCE; GERMANY; GREECE; ITALY; JAPAN; MEXICO; PATENT; PORTUGAL; PRIORITY JOURNAL; SLOVAKIA; SPAIN; SWEDEN; TAX; UNITED KINGDOM; UNITED STATES;

CHI-SQUARE DISTRIBUTION; COMMERCE; HEALTH CARE COSTS; HEALTH POLICY; HEALTH SERVICES ACCESSIBILITY; HEALTH STATUS DISPARITIES; HUMANS; INTERNATIONALITY; MODELS, ECONOMIC; PRESCRIPTION DRUGS; UNITED STATES; WORLD HEALTH;

EID: 79960140514     PISSN: 17441331     EISSN: 1744134X     Source Type: Journal    
DOI: 10.1017/S1744133111000090     Document Type: Article

References (52)

1. Aaserud, M., A. T. Dahlgren, J. P. Kösters, A. D. Oxman, C. Ramsay and H. Sturm (2009), Pharmaceutical policies: effects of reference pricing, other pricing, and purchasing policies, The Cochrane Library, (3): 1-44.
2. Aronsson, T.,M. A. Bergman and N. Rudholm (2001), The impact of generic competition on brand name market shares - empirical evidence from micro data, Review of Industrial Organization, 19: 425-435. (Pubitemid 33112371)
3. Berndt, E. R., Z. Griliches and J. G. Rosett (1992), Auditing the Producer Price Index: Micro Evidence from Prescription Pharmaceutical Preparations, Cambridge, Massachusetts: NBERWorking Papers Series.
4. Berndt, E. R., P. M. Danzon and G. B. Kruse (2007), Dynamic competition in pharmaceuticals: cross-national evidence from new drug diffusion, Managerial and Decision Economics, 28: 231-250.
5. Berndt, E. R., L. Bui, D. R. Reiley and G. L. Urban (1995), Information, marketing, and pricing in the U.S. Antiulcer Drug Market, American Economic Review: Papers and Proceedings, 85: 100-105.
6. Caves, R. E., M. D. Whinston and M. A. Hurwitz (1991), Patent Expiration, Entry and Competition in the US Pharmaceutical Industry, Brookings Papers on Economic Activity, Washington, DC: Brookings Institution Press.
7. Congressional Budget Office (CBO) (1998), How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry, Washington, DC: CBO.
8. Congressional Budget Office (CBO) (2005), Prices for Brand-Name Drugs Under Selected Federal Programs, Washington, DC: CBO.
9. Congressional Budget Office (CBO) (2008), Increasing Transparency in the Pricing of Health Care Services and Pharmaceuticals. Economic and Budget Issues Brief, Washington, DC: CBO.
10. Dalen, D. M., S. Strom and T. Haabeth (2006), Price regulation and the generic competition in the pharmaceutical market, European Journal of Health Economics, 7: 208-214. (Pubitemid 44581788)
11. Danzon, P. M. and L.-W. Chao (2000a), Cross national price differences for pharmaceuticals: how large and why?, Journal of Health Economics, 19: 159-195.
12. Danzon, P. M. and L.-W. Chao (2000b), Does regulation drive out competition in pharmaceutical markets?, Journal of Law & Economics, 43: 311-357.
13. Danzon, P. M. and A. Towse (2003), Differential pricing for pharmaceuticals: reconciling access, R&D and patents, International Journal of Health Care Finance and Economics, 3: 183-205.
14. Danzon, P. M. and M. F. Furukawa (2003), Prices and availability of pharmaceuticals: evidence from nine countries. Health Affairs, July-December; Suppl Web Exclusives: W3-521-36. doi:10.1377/hthaff.w3.521
15. Danzon, P. M. and M. F. Furukawa (2008), International prices and availability of pharmaceuticals in 2005, Health Affairs, 27(1): 221-233. (Pubitemid 351198606)
16. Danzon, P. M., Y. R.Wang and L.Wang (2005), The impact of price regulation on the launch delay of new drugs, Journal of Health Economics, 14(3): 269-292.
17. Department of Health (1997), The Pharmaceutical Price Regulation Scheme: Second Report to Parliament, United Kingdom: Department of Health.
18. Department of Health (2009), The Pharmaceutical Price Regulation Scheme: Tenth Report to Parliament, United Kingdom: COI for the Department of Health.
19. Desiraju, R., H. Nair and P. Chintagunta (2004), Diffusion of new pharmaceutical drugs in developing and developed nations, International Journal of Research in Marketing, 21: 341-347.
20. Espin, J., J. Rovira and A. Olry de Labry (2010), Policy Paper on External Reference Pricing, WHO/HAI Project on Medicines Prices and Availability, The Netherlands, Geneva and HAI: WHO.
21. Frank, R. G. and D. S. Salkever (1997), Generic entry and the pricing of pharmaceuticals, Journal of Economics & Management Strategy, 6(1): 75-90.
22. General Accounting Office (GAO) (1995), Prescription Drug Prices: Official Index Overstates Producer Price Inflation. GAO Report, vol. 90, Washington, DC: GPO.
23. General Accounting Office (GAO) (1996), Health Care: Opportunities to Reduce Outpatient
24. Pharmacy Costs. GAO Report, vol. 162, Washington, DC: GPO.
25. General Accounting Office (GAO) (2009), Brand-name prescription drug pricing: Lack of therapeutically equivalent drugs and limited competition may contribute to extraordinary price increases. GAO-10-201, December 22, Washington, DC: GPO.
26. Grabowski, H. and J. Vernon (1986), Longer patents for lower imitation barriers: The 1984 Drug Act, The American Economic Review, 76(2): 195-198.
27. Grabowski, H. G. and J. M. Vernon (1996), Brand loyalty, entry and price competition in pharmaceuticals after the 1984 Drug Act, Journal of Law and Economics, 35(2): 331-350.
28. Grootendorst, P. and D. Stewart (2006), A re-examination of the impact of reference pricing on anti-hypertensive drug plan expenditure in British Columbia, Health Economics, 15: 735-742. (Pubitemid 44057243)
29. Jönsson, B. (1994), Pricing and reimbursement of pharmaceuticals in Sweden, Pharmacoeconomics, 6 Supplement 1: S51-S60.
30. Kanavos, P. and E. Mossialos (1999), International comparisons of health care expenditures: what we know and what we do not know, Journal of Health Services Research and Policy, 4(2): 122-126. (Pubitemid 29186863)
31. Kanavos, P. and J. Costa-Font (2005), Pharmaceutical parallel trade in Europe: stakeholder and competition effects, Economic Policy, 20(44): 751-798. (Pubitemid 44308875)
32. Kanavos, P., J. Costa-Font and A. McGuire (2007), Product differentiation, competition and regulation of new drugs: the case of statins in four European countries, Managerial and Decision Economics, 28: 455-465.
33. Kanavos, P., J. Costa-Font and E. Seeley (2008), Competition in off-patent drug markets: issues, regulation and evidence, Economic Policy, 55: 498-539.
34. Kanavos, P., E. Seeley and S. Vandoros (2009). Tender Systems for Outpatient Pharmaceuticals in the European Union: Evidence from the Netherlands, Germany and Belgium, Brussels: European Commission, DG Enterprise and European Medicines Information Network (EMINet).
35. Kanavos, P., J. Manning, D. Taylor, G. W. Schurer and K. Checchi (2010), Implementing Value-Based Pricing for Pharmaceuticals in the UK, London: 2020 Health.
36. Kanavos, P., E. Nicod, J. Espin, S. van den Aardweg and S. Pomedli (2011a), Shortand Long-term Effects of Value-based Pricing Versus External Price Referencing, Brussels: European Commission, DG Enterprise and European Medicines Information Network (EMINet).
37. Kanavos, P., G.W. Schurer and S. Vogler (2011b), The Pharmaceutical Distribution Chain in the European Union: Structure and Impact on Pharmaceutical Prices, Brussels: European Commission, DG Enterprise and European Medicines Information Network (EMINet).
38. Kyle, K. M. (2007), Pharmaceutical price controls and entry strategies, Review of Economics and Statistics, 89(1): 88-99.
39. Lanjouw, J. O. (2005), Patents, Price Controls and Access to New Drugs: How Policy Affects Global Market Entry, Working Paper, Agricultural and Resource Economics
40. Department, University of California, Berkeley, CA.
41. Lexchin, J. (2004), The effect of generic competition on the price of brand-name drugs, Health Policy, 68(1): 47-54. (Pubitemid 38373609)
42. Light, D.W. (2009), Global drug discovery: Europe is ahead, Health Affairs,Web Exclusive, 28(5): w969-w977.
43. Light, D. W. and J. Lexchin (2005), Foreign free riders and the high price of US medicines, British Medical Journal, 331: 958-960. (Pubitemid 41510858)
44. Magazzini, L., F. Pammolli and M. Riccaboni (2004), Dynamic competition in pharmaceuticals. Patent expiry, generic penetration and industry structure, European Journal of Health Economics, 5(2): 1598-1618.
45. McClellan, M. (2003), Commentary - drug R&D: must Americans always pay?, Business Week, October 13.
46. Mujumdar, S. and D. Pal (2005), Do price ceilings abroad increase US drug prices?, Economics Letters, 87: 9-13. (Pubitemid 40366268)
47. Österreichisches Bundesinstitut für Gesundheitswesen (ÖBIG) (2007), Pharmaceutical Pricing and Reimbursement Information (PPRI), http://ppri.oebig.at/index.aspx? Navigation5r%7C2%7C0- [10 December 2008].
48. Productivity Commission (2001), International Pharmaceutical Price Differences, Research Report, Canberra, Australia: Productivity Commission.
49. Rizzo, J. A. (1999), Advertising and competition in the ethical pharmaceutical industry: the case of antihypertensive drugs, Journal of Law and Economics, 42(1): 89-116.
50. Rizzo, J. A. and R. Zeckhauser (2005), Generic Script Share and the Price of Brand-Name Drugs: The Role of Consumer Choice, Cambridge, Massachusetts: NBER Working Paper 11431.
51. Roughead, E. E., R. Lopert and L. N. Sansom (2007), Prices for innovative pharmaceutical products that provide health gain: a comparison between Australia and the United States, Value in Health, 10: 514-520. (Pubitemid 350013269)
52. Sorenson, C., M. Drummond and P. Kanavos (2008), Ensuring Value for Money in Health Care: The Role of HTA in the European Union, Financing Sustainable Healthcare in Europe: New Approaches for New Outcomes, European Observatory on Health Systems and Policies, Buckingham: Open University Press.