Download or read book Structural Models of the Prescription Drug Market written by Andrew T. Ching and published by . This book was released on 2019-12-16 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Structural Models of the Prescription Drug Market provides a critical review of the structural econometric research focusing on the richness and complexity of the prescription drug market and discussing future research directions. Because a large number of papers rely on a Bayesian learning framework, Section 2 sets the stage by introducing the basic learning model that will be useful in later sections. Section 3 discusses the literature that makes use of individual level data. Section 4 discusses the literature that studies the product lifecycle, which primarily uses product level data. This is a broad set of articles, which includes studies focusing on persuasive versus informative effects, clinical outcomes, and publicity, as well as models related to pre-market behavior (such as R&D decisions and clinical trial outcomes). Section 5 addresses other related applications of structural models in this area, and Section 6 summarizes the key takeaways and discusses future research directions.
Download or read book Structural Models of the Prescription Drug Market written by ANDREW T. CHING; MANUEL HERMOSILLA; QIANG LIU. and published by . This book was released on 2019 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Structural Models of the Prescription Drug Market provides a critical review of the structural econometric research focusing on the richness and complexity of the prescription drug market and discussing future research directions.
Download or read book A Dynamic Oligopoly Structural Model for the Prescription Drug Market After Patent Expiration written by Andrew T. Ching and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article incorporates consumer learning and heterogeneity into a dynamic oligopoly model for the prescription drug market. In the model, both firms and patients need to learn the generic qualities via patients' experiences, generic firms' entry decisions are endogenous, but their entry timings depend on a random approval process. I apply the model to examine the impact of shortening the expected generic approval time. Although this policy experiment brings generics to the market sooner, it increases a potential entrant's likelihood of entering a crowded market and hence could reduce the total number of generic entrants and consumer welfare.
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 The Role of NIH in Drug Development Innovation and Its Impact on Patient Access written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2020-01-27 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: To explore the role of the National Institutes of Health (NIH) in innovative drug development and its impact on patient access, the Board on Health Care Services and the Board on Health Sciences Policy of the National Academies jointly hosted a public workshop on July 24â€"25, 2019, in Washington, DC. Workshop speakers and participants discussed the ways in which federal investments in biomedical research are translated into innovative therapies and considered approaches to ensure that the public has affordable access to the resulting new drugs. This publication summarizes the presentations and discussions from the workshop.
Download or read book Estimating the Effect of Health Insurance on Personal Prescription Drug Importation in Various Subpopulations Using Complex Survey Data and Marginal Structural Models written by Andrew R. Zullo and published by . This book was released on 2015 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Drug Distribution and Pricing Models written by Kathleen M. Iacocca and published by . This book was released on 2011 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation investigates distribution and pricing models for the U.S. pharmaceutical industry. Motivated by recent events in this industry, we explore three areas of the pharmaceutical supply chain in an effort to streamline the drug distribution channel and to understand the underlying market forces and the pricing structure of pharmaceutical drugs. First we present a mathematical model to compare the effectiveness of the resell distribution agreements (Buy-and-Hold and Fee-For-Service) and the direct distribution agreement (Direct-to-Pharmacy) for the U.S. pharmaceutical supply chain and its individual participants. The model features multi-period dynamic production-inventory planning with time varying parameters in a decentralized setting. While the resell agreements are asset-based, the direct agreement is not. We show that the Direct-to- Pharmacy agreement achieves the global optimum for the entire supply chain by eliminating investment buying and thus always outperforms the resell distribution agreements currently practiced in the industry. We also show that the Direct-to-Pharmacy agreement is flexible because it allows the manufacturer and the wholesaler to share the total supply chain profit in an arbitrary way. We further provide necessary conditions for all supply chain participants to be better off in the Direct-to-pharmacy agreement. Motivated by the public concern for the rising cost of prescription drugs, we next examine how four factors (the level of competition, the therapeutic purpose, the age of the drug, and the manufacturer who developed the drug) play a role in the pricing of brand-name drugs. We develop measures for these factors based on information observable to all players in the pharmaceutical supply chain. Using data on the wholesale prices of prescription drugs from a major U.S. pharmacy chain, we estimate a model for drug prices based on our measures of competition, therapeutic purpose, age, and manufacturer. We observe that proliferation of dosing levels tends to reduce the price of a drug, therapeutic conditions which are both less common and more life threatening lead to higher prices, older drugs are less expensive than newer drugs, and some manufacturers set prices systematically different from others even after controlling for other factors. Lastly, we investigate why brand-name drugs are priced higher than their generic equivalents in the U.S. market. We hypothesize that some consumers have a preference for brand names which outweighs the cost savings they could realize by switching to generics. Brand preferences are derived from two sources. First, brands may have a higher perceived quality due to advertising and marketing activities. Second, individuals are habitual in their consumption of prescription drugs, which leads to continued use of the brand in the face of generic competition. To explore these issues, we develop a structural demand model within one therapeutic class. We estimate the model using wholesale price and demand data from the years 2000 through 2004. Through this process, we estimate the brand preferences by customer utility equations. Conservatively, we see consumers willing to pay $400 more per month for a brand name drug than for its generic equivalent. In addition, consumers exhibit high switching costs for prescription drugs. Finally, we find that generic entry reduces sales only for the brand that it is replicating, but not for other brand drugs even if they treat the same condition.
Download or read book Market Structure and Market Power in the U S Prescription Drug Industry written by Linda K. Pine and published by . This book was released on 1973 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Affordable Care Act on the Competition in the Post Patent Ethical Drug Market written by Yu Yu and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: US policy makers have been looking at various ways to curb rising health care costs in USA, including ways to promote the use of generic drugs in lieu of brand drugs. In this broader context, the implementation of Patient Protection and Affordable Care Act (ACA) in December 2013 will introduce major changes in the pharmaceutical market. This paper is designed to study the post patent ethical drug market and simulate the impact of ACA on individuals, healthcare providers and pharmaceutical firms. Design/Methodology/Approach: To fully understand the impact of such policy changes, we develop a structural model to study consumers' buying behavior and firm competition in the post patent ethical drug markets. We use the estimated model parameters to conduct four policy simulations to illustrate the effect of Obamacare on: 1) increasing the relative size of price insensitive segment; 2) reducing price sensitivity in the price sensitive segment; 3) providing brand price discount to Medicare patients previously in the “donut hole”; and 4) the effect of change in people's attitude towards generics. Findings: Our model estimation reveals two classes of consumers with different price sensitivities. This heterogeneity explains the increase in the brand price after generic entry. We identify consumers' switching costs between generic and brand drugs, as well as among different generics. From the policy simulation, we find that except the closure of Medicare donut hole, all other policy changes lead to increased usage of the focal molecule, and the efforts to increase insurance coverage and reduce the out of pocket payment for prescription drugs lead to increase in firm profit. Originality/Value: This paper is the first to illustrate the potential policy effect of Obamacare through a structural model on post patent ethical drug market.
Download or read book The Changing Economics of Medical Technology written by Institute of Medicine and published by National Academies Press. This book was released on 1991-02-01 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: Americans praise medical technology for saving lives and improving health. Yet, new technology is often cited as a key factor in skyrocketing medical costs. This volume, second in the Medical Innovation at the Crossroads series, examines how economic incentives for innovation are changing and what that means for the future of health care. Up-to-date with a wide variety of examples and case studies, this book explores how payment, patent, and regulatory policiesâ€"as well as the involvement of numerous government agenciesâ€"affect the introduction and use of new pharmaceuticals, medical devices, and surgical procedures. The volume also includes detailed comparisons of policies and patterns of technological innovation in Western Europe and Japan. This fact-filled and practical book will be of interest to economists, policymakers, health administrators, health care practitioners, and the concerned public.
Download or read book Economic Dimensions of Personalized and Precision Medicine written by Ernst R. Berndt and published by University of Chicago Press. This book was released on 2019-04-22 with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt: Personalized and precision medicine (PPM)—the targeting of therapies according to an individual’s genetic, environmental, or lifestyle characteristics—is becoming an increasingly important approach in health care treatment and prevention. The advancement of PPM is a challenge in traditional clinical, reimbursement, and regulatory landscapes because it is costly to develop and introduces a wide range of scientific, clinical, ethical, and socioeconomic issues. PPM raises a multitude of economic issues, including how information on accurate diagnosis and treatment success will be disseminated and who will bear the cost; changes to physician training to incorporate genetics, probability and statistics, and economic considerations; questions about whether the benefits of PPM will be confined to developed countries or will diffuse to emerging economies with less developed health care systems; the effects of patient heterogeneity on cost-effectiveness analysis; and opportunities for PPM’s growth beyond treatment of acute illness, such as prevention and reversal of chronic conditions. This volume explores the intersection of the scientific, clinical, and economic factors affecting the development of PPM, including its effects on the drug pipeline, on reimbursement of PPM diagnostics and treatments, and on funding of the requisite underlying research; and it examines recent empirical applications of PPM.
Download or read book Pain Management and the Opioid Epidemic written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-09-28 with total page 483 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drug overdose, driven largely by overdose related to the use of opioids, is now the leading cause of unintentional injury death in the United States. The ongoing opioid crisis lies at the intersection of two public health challenges: reducing the burden of suffering from pain and containing the rising toll of the harms that can arise from the use of opioid medications. Chronic pain and opioid use disorder both represent complex human conditions affecting millions of Americans and causing untold disability and loss of function. In the context of the growing opioid problem, the U.S. Food and Drug Administration (FDA) launched an Opioids Action Plan in early 2016. As part of this plan, the FDA asked the National Academies of Sciences, Engineering, and Medicine to convene a committee to update the state of the science on pain research, care, and education and to identify actions the FDA and others can take to respond to the opioid epidemic, with a particular focus on informing FDA's development of a formal method for incorporating individual and societal considerations into its risk-benefit framework for opioid approval and monitoring.
Download or read book Handbook of Marketing Decision Models written by Berend Wierenga and published by Springer. This book was released on 2017-07-12 with total page 598 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Second Edition of this book presents the state of the art in this important field. Marketing decision models constitute a core component of the marketing discipline and the area is changing rapidly, not only due to fundamental advances in methodology and model building, but also because of the recent developments in information technology, the Internet and social media. This Handbook contains eighteen chapters that cover the most recent developments of marketing decision models in different domains of marketing. Compared to the previous edition, thirteen chapters are entirely new, while the remaining chapters represent complete updates and extensions of the previous edition. This new edition of the Handbook has chapters on models for substantive marketing problems, such as customer relationship management, customer loyalty management, website design, Internet advertising, social media, and social networks. In addition, it contains chapters on recent methodological developments that are gaining popularity in the area of marketing decision models, such as structural modeling, learning dynamics, choice modeling, eye-tracking and measurement. The introductory chapter discusses the main developments of the last decade and discusses perspectives for future developments.
Download or read book How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry written by and published by U.S. Government Printing Office. This book was released on 1998 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Oxford Handbook of the Economics of the Biopharmaceutical Industry written by Patricia M. Danzon and published by Oxford University Press. This book was released on 2012-04-12 with total page 618 pages. Available in PDF, EPUB and Kindle. Book excerpt: The biopharmaceutical industry has been a major driver of technological change in health care, producing unprecedented benefits for patients, cost challenges for payers, and profits for shareholders. As consumers and companies benefit from access to new drugs, policymakers around the globe seek mechanisms to control prices and expenditures commensurate with value. More recently the 1990s productivity boom of new products has turned into a productivity bust, with fewer and more modest innovations, and flat or declining revenues for innovative firms as generics replace their former blockbuster products. This timely volume examines the economics of the biopharmaceutical industry, with eighteen chapters by leading academic health economists. Part one examines the economics of biopharmaceutical innovation including determinants of the costs and returns to new drug development; how capital markets finance R&D and how costs of financing the biopharmaceutical industry compare to financing costs for other industries; the effects of safety and efficacy regulation by the Food and Drug Administration (FDA) and of price and reimbursement regulation on incentives for innovation; and the role of patents and regulatory exclusivities. Part two examines the market for biopharmaceuticals with chapters on prices and reimbursement in the US, the EU, and other industrialized countries, and in developing countries. It looks at the optimal design of insurance for drugs and the effects of cost sharing on spending and on health outcomes; how to measure the value of pharmaceuticals using pharmacoeconomics, including theory, practical challenges, and policy issues; how to measure pharmaceutical price growth over time and recent evidence; empirical evidence on the value of pharmaceuticals in terms of health outcomes; promotion of pharmaceuticals to physicians and consumers; the economics of vaccines; and a review of the evidence on effects of mergers, acquisitions and alliances. Each chapter summarizes the latest insights from theory and recent empirical evidence, and outlines important unanswered questions and areas for future research. Based on solid economics, it is nevertheless written in terms accessible to the general reader. The book is thus recommended reading for academic economists and non-economists, and for those in industry and policy who wish to understand the economics of this fascinating industry.
Download or read book Understanding the Demand for Illegal Drugs written by National Research Council and published by National Academies Press. This book was released on 2010-10-23 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite efforts to reduce drug consumption in the United States over the past 35 years, drugs are just as cheap and available as they have ever been. Cocaine, heroin, and methamphetamines continue to cause great harm in the country, particularly in minority communities in the major cities. Marijuana use remains a part of adolescent development for about half of the country's young people, although there is controversy about the extent of its harm. Given the persistence of drug demand in the face of lengthy and expensive efforts to control the markets, the National Institute of Justice asked the National Research Council to undertake a study of current research on the demand for drugs in order to help better focus national efforts to reduce that demand. This study complements the 2003 book, Informing America's Policy on Illegal Drugs by giving more attention to the sources of demand and assessing the potential of demand-side interventions to make a substantial difference to the nation's drug problems. Understanding the Demand for Illegal Drugs therefore focuses tightly on demand models in the field of economics and evaluates the data needs for advancing this relatively undeveloped area of investigation.
Download or read book Treating Drug Problems written by Committee for the Substance Abuse Coverage Study and published by National Academies Press. This book was released on 1992-01-01 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt: Treating Drug Problems, Volume 2 presents a wealth of incisive and accessible information on the issue of drug abuse and treatment in America. Several papers lay bare the relationship between drug treatment and other aspects of drug policy, including a powerful overview of twentieth century narcotics use in America and a unique account of how the federal government has built and managed the drug treatment system from the 1960s to the present. Two papers focus on the criminal justice system. The remaining papers focus on Employer policies and practices toward illegal drugs. Patterns and cycles of cocaine use in subcultures and the popular culture. Drug treatment from a marketing, supply-and-demand perspective, including an analysis of policy options. Treating Drug Problems, Volume 2 provides important information to policy makers and administrators, drug treatment specialists, and researchers.
