Download or read book Price Regulation and Parallel Imports of Pharmaceuticals written by Kurt R. Brekke and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Parallel Imports of Pharmaceuticals written by Cédric Julien Poget and published by Springer Science & Business Media. This book was released on 2007-12-20 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Parallel trade occurs if international price differences for identical products are high and a policy of regional or international exhaustion of the respective property right has been implemented in the high price country. The work by C. Poget analyses how parallel imports of pharmaceuticals are affecting end consumer prices and drug expenditures in three Scandinavian countries, Sweden, Denmark and Norway. Based on his observations he derives proposals for policy reforms in EU member countries and Switzerland.
Download or read book Parallel Imports and Price Controls written by Gene M. Grossman and published by . This book was released on 2006 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Price controls create opportunities for international arbitrage. Many have argued that such arbitrage, if tolerated, will undermine intellectual property rights and dull the incentives for investment in research-intensive industries such as pharmaceuticals. We challenge this orthodox view and show, to the contrary, that the pace of innovation often is faster in a world with international exhaustion of intellectual property rights than in one with national exhaustion. The key to our conclusion is to recognize that governments will make different choices of price controls when parallel imports are allowed by their trade partners than they will when they are not.
Download or read book A Model of Parallel Imports of Pharmaceuticals with Endogenous Price Controls written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Vertical Price Control and Parallel Imports written by Keith Eugene Maskus and published by World Bank Publications. This book was released on 2000 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Parallel imports are genuine products brought into a country without the authorization of the copyright, patent, or trademark owner. Countries vary considerably in their legal treatment of parallel imports, as determined by their choice of exhaustion doctrine. A new model analyzes parallel imports a a response to vertical pricing arrangements between a rights holder ("manufacturer") and a foreign distributor.
Download or read book Parallel Imports of Pharmaceutical Products in the European Union written by Keith Eugene Maskus and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: July 2001 Parallel imports are legitimately produced goods imported legally into a country without the authorization of a trademark, copyright, or patent holder. In the European Union, so long as a pharmaceutical manufacturer has placed a good on the market voluntarily, the principle of free movement of goods allows individuals or firms within the EU to trade goods across borders without the consent of the producer. What is the effect of these parallel imports? The point of parallel imports of pharmaceuticals is arbitrage between countries with different prices. For several years, an important issue in the European Union has been the evident conflict between differing price regulations in the member states, on the one hand, and the consequences of parallel trade, on the other. In the EU, so long as the manufacturer has placed the good on the market voluntarily, the principle of free movement of goods allows individuals or firms within the EU to trade goods across borders without the consent of the producer. In this context, Ganslandt and Maskus study the effects of parallel trade in the pharmaceutical industry. They develop a model in which an original manufacturer competes in its home market with parallel-importing firms. The two key hypotheses in their theoretical analysis are these: First, if the potential for parallel imports is unlimited, the manufacturer chooses deterrence and international prices converge. Second, with endogenously limited arbitrage, the manufacturing firm accommodates and the price in the home market falls as the volume of parallel trade rises. The authors test their hypotheses on data from the Swedish market for 1995-98. Before 1995 Sweden prohibited parallel imports of pharmaceutical products, but entry into the European Union, on January 1, 1995, required Sweden to allow them. Simple empirical tests favor the accommodation hypothesis with a time lag. Using data from Sweden, Ganslandt and Maskus find that the prices of drugs subject to competition from parallel imports increased less than those for other drugs between 1995 and 1998. Roughly three-fourths of this effect can be attributed to the lower prices of parallel imports and one-fourth to lower prices charged by the manufacturing firm. Econometric analysis finds that rents to parallel importers (or resource costs in parallel trade) could be more than the gain to consumers from lower prices. This paper is a product of Trade, Development Research Group. The authors may be contacted at [email protected] or [email protected].
Download or read book Pharmaceutical Parallel Trade in the UK written by Panos Kanavos and published by Basic Civitas Books. This book was released on 2005-01-01 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book External Reference Pricing and Parallel Imports of Pharmaceuticals written by Foad Iravani and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Governments across the world constantly use a variety of measures to contain drug costs in order to increase patient access to critical medications. External Reference Pricing (ERP), or international price comparison, is a commonly employed policy to control prices of pharmaceuticals. ERP uses the price(s) of a medicinal product in one or several countries in order to derive a benchmark or reference price for the purposes of setting the price of the product in a given country. Despite potential drawbacks, empirical studies show ERP has been successful in reducing drug prices. Another strategy that can reduce drug prices is legalizing parallel imports of drugs from low-price countries. Motivated by the differences between government policies and the absence of national price management policies in the U.S., in this paper we compare the effects of implementing ERP or authorizing parallel imports on firm profit and different social welfare measures. We find that authorizing parallel imports can result in higher firm profit and/or social welfare than using ERP. We also examine, in a decentralized supply chain, two variations of ERP that are used in practice, the ex-factory-based ERP and the pharmacy purchase price (PPP)-based ERP. We show that despite the ex-factory-based ERP being more common, PPP-based ERP can increase both firm profits and social welfare. Therefore, governments should consider using PPP-based ERP policies. Our findings help generate insights for ongoing policy discussions around measures for controlling drug prices in the U.S.
Download or read book Impediments to Parallel Trade in Pharmaceuticals Within the European Community written by Commission of the European Communities. Directorate General for Competition and published by . This book was released on 1992 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact of Parallel Imports on Pricing and Product Launch Decisions in Pharmaceutical Industry written by Mehmet Sekip Altug and published by . This book was released on 2017 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Product launch and pricing decisions in the pharmaceutical industry across different countries are complex. Although introducing a newly developed drug to every country is beneficial for patients worldwide, doing so may have adverse implications for drug developers, such as the emergence of parallel imports. We study a pharmaceutical firm that already introduced a pioneering drug in its home country, where the product is protected by patent rules. The firm decides whether to launch in a second country in the same region, where parallel import between these two countries is feasible and profitable for the parallel importer. We characterize the joint pricing and product launch decision. We show the firm chooses one of three strategies: (i) launch and accommodate parallel import, (ii) launch and deter parallel import, and (iii) not launch. We show that firms are more likely not to launch the drug when the drug price is determined through a negotiation between the firm and the government. We discuss how insurance coverage, market size, quality perception of the parallel imported drug, and valuations affect these strategies. We then study the impact of launch and pricing decisions on social welfare and discuss policy implications for the regulators and potential strategies for the firm to mitigate the negative effects of a parallel import threat. We also study the impact of perfect and imperfect competition among parallel import firms on pharmaceutical firm's price and launch decisions. Finally, we discuss a common practice of distributing rebates in the home country as a post-launch strategy, and characterize the optimal rebate amount to deter or accommodate parallel import.
Download or read book Parallel Imports Drag Price Control and Pharmaceutical Innovation written by Ken Tabata and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Making Medicines Affordable written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2018-03-01 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thanks to remarkable advances in modern health care attributable to science, engineering, and medicine, it is now possible to cure or manage illnesses that were long deemed untreatable. At the same time, however, the United States is facing the vexing challenge of a seemingly uncontrolled rise in the cost of health care. Total medical expenditures are rapidly approaching 20 percent of the gross domestic product and are crowding out other priorities of national importance. The use of increasingly expensive prescription drugs is a significant part of this problem, making the cost of biopharmaceuticals a serious national concern with broad political implications. Especially with the highly visible and very large price increases for prescription drugs that have occurred in recent years, finding a way to make prescription medicinesâ€"and health care at largeâ€"more affordable for everyone has become a socioeconomic imperative. Affordability is a complex function of factors, including not just the prices of the drugs themselves, but also the details of an individual's insurance coverage and the number of medical conditions that an individual or family confronts. Therefore, any solution to the affordability issue will require considering all of these factors together. The current high and increasing costs of prescription drugsâ€"coupled with the broader trends in overall health care costsâ€"is unsustainable to society as a whole. Making Medicines Affordable examines patient access to affordable and effective therapies, with emphasis on drug pricing, inflation in the cost of drugs, and insurance design. This report explores structural and policy factors influencing drug pricing, drug access programs, the emerging role of comparative effectiveness assessments in payment policies, changing finances of medical practice with regard to drug costs and reimbursement, and measures to prevent drug shortages and foster continued innovation in drug development. It makes recommendations for policy actions that could address drug price trends, improve patient access to affordable and effective treatments, and encourage innovations that address significant needs in health care.
Download or read book International Drug Regulatory Mechanisms written by Albert I Wertheimer and published by CRC Press. This book was released on 2004-08-04 with total page 390 pages. Available in PDF, EPUB and Kindle. Book excerpt: Learn how international governments have committed themselves to improving access to quality health care! International Drug Regulatory Mechanisms explores the environment, organization, structure, functioning, and finance of health systems and pharmaceutical markets in 19 countries. Local experts describe each country’s experiences with and lessons learned from the regulation of pharmaceutical products. This book will help government officials, pharmacy educators, and pharmaceutical industry leaders from around the globe identify and develop successful methods for controlling pharmaceutical drug prices and utilization. In International Drug Regulatory Mechanisms, you will learn about the health care system of each country and each government’s measures to control drug costs. This text shows you what government interventions are feasible as well as effective, and the impact of these measures on consumers, government agencies, and the pharmaceutical companies and distributors. Drug policies, reimbursement concepts, and health insurance companies are all examined to give you a better working knowledge of the methodology and guidelines involving drug control in nations such as: Iceland Canada Israel Malaysia Argentina Taiwan Mexico Italy International Drug Regulatory Mechanisms is an extensive text that shows how pharmaceuticals are regulated throughout the world. This book examines how—despite similar goals—price controls, utilization controls, record keeping, and quality requirements differ greatly between countries. Using numerous graphs, tables, and figures, this one-of-a-kind resouce provides you with new insight into which strategies are superior and how to implement these strategies in your own country.
Download or read book Price Caps Versus Reimbursement Limits written by Laura Birg and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I study the effect of parallel trade (cross border resale of goods without the authorization of the manufacturer) on pharmaceutical regulation in a North-South framework with a firm's endogenous decision to export to the South. Governments in both countries may limit prices directly via price caps or restrict third-party payer reimbursement for the drug via reimbursement limits. Parallel trade may relax regulation in the source country of parallel imports (South) and intensify regulation in the destination country (North): In the source country, parallel trade may relax regulation both under a price cap and a reimbursement limit under certain conditions. In the destination country, parallel trade has no effect on the level of regulation under a price cap, and it intensifies regulation under a reimbursement limit. Parallel trade may change regulatory preferences: Under no parallel trade, both the source and destination country set prices caps. Under parallel trade, the source country sets a price cap, but the destination country sets a reimbursement, thereby enforcing a higher price cap in the South. This implies higher drug prices under parallel trade in both source and destination country.
Download or read book Pharmaceutical Price Regulation written by Patricia Munch Danzon and published by A E I Press. This book was released on 1997 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: The high cost of R&D makes pharmaceuticals vulnerable to aggressive price regulation. Yet even stringent price regulatory systems have failed to control total drug expenditures. The challenge for public policy, the author states, is securing a balance between controlling health care spending today and preserving incentives for innovative R&D for health and the quality of life tomorrow.
Download or read book WHO guideline on country pharmaceutical pricing policies written by and published by World Health Organization. This book was released on 2020-09-29 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, high prices of pharmaceutical products have posed challenges in high- and low-income countries alike. In many instances, high prices of pharmaceutical products have led to significant financial hardship for individuals and negatively impacted on healthcare systems' ability to provide population-wide access to essential medicines. Pharmaceutical pricing policies need to be carefully planned, carried out, and regularly checked and revised according to changing conditions. Strong, well-thought-out policies can guide well-informed and balanced decisions to achieve affordable access to essential health products. This guideline replaces the 2015 WHO guideline on country pharmaceutical pricing policies, revised to reflect the growing body of literature since the last evidence review in 2010. This update also recognizes country experiences in managing the prices of pharmaceutical products.
Download or read book Parallel Trade in Pharmaceuticals written by Frederick M. Abbott and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pharmaceutical products are developed, approved, manufactured, traded, and used under complex and demanding regulatory schemes. While the intensity of regulation varies substantially among countries, lightly regulated markets are the exception, particularly from an economic standpoint. In this regard, pharmaceuticals are not generally traded in what might be described as a "free market" in the sense of absence of regulation, and this includes import restrictions which are generally consistent with the overall regulatory schemes. A drug that is not approved for marketing in a particular country does not become so because it is imported. Parallel trade (i.e., imports and exports) in pharmaceuticals takes place in markets that are "distorted" by regulation. Probably the single most significant "distortion mechanism" is the patent. The patent allows its owner to price a pharmaceutical product in the absence of ordinary market competition in the sense that potential competitors may not freely copy the product. The ultimate price may depend on a variety of factors, including the uniqueness of therapeutic effect within a particular class. But, the price of patented pharmaceutical products generally does not represent the cost of reverse engineering plus production. Substantially but not exclusively because of the effects of patents, many countries place controls on the prices of pharmaceutical products. Originator patented pharmaceutical products and generic products are often subject to controls. In addition, as a result of public health concerns regarding lower income countries, a number of pharmaceutical companies are voluntarily licensing patented products for manufacture and sale in developing countries at significantly lower prices than are charged in high income markets. This is backdrop to addressing issues concerning parallel trade in pharmaceutical products. It is conducted in what typically are heavily regulated markets, and this may include price controls and voluntary discriminatory pricing. This adds a substantial layer of complexity to analysis of the "exhaustion question." Today there is no reason for sympathy toward originator complaints about government price controls distorting ordinary international trade mechanisms, if for no other reason than that pricing practices have shown no respect for consumers or public health budgets. If an originator company voluntarily licenses a patented product for distribution in low and middle income countries at prices substantially below the "market" price in the high income countries, it should be able to make contractual arrangements with the licensees that the resulting production and distribution will be limited to designated markets. Government programs that take advantage of such special discriminatory pricing may add the weight of government re-export restrictions on such specifically licensed products. If a government's pricing control practices become sufficiently distortive such that the conduct is manifestly unfair, a pharmaceutical company may be justified in restricting the quantity of drugs delivered into that market. But, that is not ordinarily the case. As a general rule, international exhaustion of patent, trademark, and copyright should be a mandatory rule for the international trading system. Political reality may, for the time being, dictate otherwise. This still leaves each government with a choice to adopt international exhaustion. This should help to facilitate price reductions in the global market for pharmaceuticals.
