scholarly journals Pharmaceutical price regulation and its impact on drug innovation: mitigating the trade-offs

2021 ◽  
pp. 1-4
Author(s):  
Ashish Kumar Kakkar
Keyword(s):  
Price Regulation ◽  
Pharmaceutical Price ◽  
Trade Offs

Pharmaceutical R&D Spending and Threats of Price Regulation

2009 ◽  
Vol 45 (1) ◽  
pp. 239-264 ◽  
Author(s):  
Joseph Golec ◽  
Shantaram Hegde ◽  
John A. Vernon
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Natural Experiment ◽  
Price Regulation ◽  
Negative Effects ◽  
Firm Level ◽  
Cross Sectional ◽  
Price Changes ◽  
Health Security ◽  
Pharmaceutical Price

AbstractDo threats of pharmaceutical price regulation affect subsequent research and development (R&D) spending? This study uses the Clinton administration’s Health Security Act (HSA) of 1993 as a natural experiment to study this issue. We link events surrounding the HSA to pharmaceutical stock price changes and then examine the cross-sectional relation between firms’ stock price changes and their subsequent unexpected R&D spending changes. Results show that the HSA had significant negative effects on stock prices and firm-level R&D spending. Conservatively, the HSA reduced R&D spending by about $1 billion even though it never became law.

Announcement

1993 ◽  
Vol 31 (14) ◽  
pp. 56-56
Keyword(s):  
Pharmaceutical Industry ◽  
Health Economics ◽  
Price Regulation ◽  
Senior Managers ◽  
Pharmaceutical Price ◽  
Pharmaceutical Price Regulation Scheme ◽  
Therapeutics Bulletin ◽  
Regulation Scheme ◽  
Department Of Health

On Wednesday 15 SeptemberDrug & Therapeutics Bulletin will be holding a seminar on the “Implications of the new Pharmaceutical Price Regulation Scheme”. The seminar, which will take place at 2, Marylebone Road, London from 2.00 – 5.00pm, will be addressed by Melvyn Jeremiah, Under Secretary, Department of Health, Andrew Towse, Director, Office of Health Economics, Jane Richards, who chairs the Prescribing Sub-Committee, GMSC and Nick Bosanquet, Professor of Economics. The afternoon should interest health economists, senior managers in the pharmaceutical industry, government officers, NHS administrators and doctors concerned with costs issues. Those wishing to attend should send a cheque for £58.75 (includes VAT) payable to Consumers’ Association to: DTB seminar, 2 Marylebone Road, London NW1 4DF. Because of the very limited seating (50 places at most), applications plus payment should not be delayed. We have not applied for PGEA approval.

DTB position on drug costs

1993 ◽  
Vol 31 (11) ◽  
pp. 44-44
Keyword(s):  
Price Regulation ◽  
Comparative Data ◽  
Drug Costs ◽  
Pharmaceutical Price ◽  
Pharmaceutical Price Regulation Scheme ◽  
Individual Drug ◽  
Regulation Scheme ◽  
Department Of Health ◽  
Drug Companies ◽  
Branded Drugs

When producing articles for the Drug and Therapeutics Bulletin we seek comparative data on the drugs under discussion, and recommend the use of a product only if we think that on balance it offers advantages in terms of effectiveness, safety, convenience and (lastly) cost over other drugs or treatments already available. The Drug Costs symposium made it clear that the price of the drug alone indicates actual expenditure by the NHS only crudely, and that other variables (length of illness or stay in hospital, altered needs for surgery or investigations) need to be taken into account if real comparisons are to be made. The symposium also reminded prescribers that the price of branded drugs paid by the NHS depends on confidential negotiations between the Department of Health and individual drug companies through the Pharmaceutical Price Regulation Scheme (PPRS). Because negotiations are done in private it remains unclear how savings by prescribers are translated into savings to the NHS. Moreover the terms of the scheme encourage the proliferation of (‘me-too’) drugs, the setting of high prices at a drug’s launch, and the use of promotion that is aggressive.

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