Reference pricing systems on the pharmaceutical market

Reference Pricing, Generic Entry, and Pharmaceutical Prices

In this paper we study the impact of reference pricing (RP) on entry of generic firms in the pharmaceutical market. For given prices, RP increases generic firms’expected profit, but since RP also stimulates price competition the impact on generic entry is theoretically ambiguous. In order to empirically test the effects of RP, we exploit a policy reform in Norway in 2005 that exposed a subset o...

Reference Pricing as a Deterrent to Entry: Evidence from the European Pharmaceutical Market∗

This paper empirically and theoretically analyzes the impact of external reference pricing (ERP) on launch delays in the market for pharmaceutical products. Governments that implement ERP use prices in other countries as negotiation benchmarks in an effort to bring down the cost of prescription drugs. By doing so, they limit the ability of firms to price discriminate across countries, and creat...

Pharmaceutical cost containment with reference-based pricing: time for refinements.

The evaluation problem in the empirical literature on the impact of pharmaceutical reference pricing

The objective of this paper is to describe empirical studies evaluating the impact of reference pricing interventions in pharmaceutical markets, and to assess the quality of their evaluation method. A total of ten studies were included in the review. The nature of the intervention, the nature of the data available, the nature of the question to be answered, and the requirements of the evaluatio...

Special Formula in the Pharmaceutical Market

Introduction: Infants born with congenital anomalies demand individualized nutritional evaluations and recommendations. The anatomical changes of neonatal surgical diseases create specific physiological constraints.Patients with different congenital anomalies have different nutritional support needs. It is essential to know the exact physiology of these anomalies in order to be able to manage a...