scholarly journals Understanding profit margins of medical providers from prescription drugs: evidence from Taiwan

2019 ◽  
Vol 12 (4) ◽  
pp. 272-280
Author(s):  
Ya-Ming  Liu
Keyword(s):  
Prescription Drugs ◽  
Financial Incentives ◽  
Generic Drugs ◽  
Drug Market ◽  
Pharmaceutical Products ◽  
Pharmaceutical Market ◽  
Research Database ◽  
Medical Providers ◽  
Data Set ◽  
Profit Margins

Abstract Background This study empirically estimates the magnitude and associated determinants of profit margins that medical providers earn from prescription drugs based on Taiwan’s pharmaceutical market. Methods Our main data set is from the population-based claims data compiled by the National Health Insurance Research Database covering three waves of price adjustment: July–December 2004, October 2007–September 2008 and October 2009–September 2010. Only drugs whose reimbursement prices were adjusted using the R-zone formula were used as samples for this study. By calculating the difference between retail and wholesale prices for 796 pharmaceutical products, we can estimate the profit margin determinants using the regression model. Results We found evidence that suppliers of generic drugs tend to offer larger discounts to medical providers than suppliers of brand-name drugs. In addition, the countervailing power of wholesale pharmaceuticals, as measured by the discount rate offered by pharmaceutical manufacturers, is positively associated with the degree of competition within the pharmaceutical market and the size of the market itself. Conclusions Our findings imply that the profit-seeking behaviour exhibited by medical providers is the engine of competitive forces in Taiwan’s prescription drug market. This creates financial incentives for them, which in turn influences their choices of prescription drugs.

scholarly journals Changes in pharmaceutical market and “fake drug” problem in the Qing period

2021 ◽  
Vol 30 (2) ◽  
pp. 277-315
Author(s):  
Jihee CHOI
Keyword(s):  
Local Governments ◽  
Medical Knowledge ◽  
Drug Market ◽  
Pharmaceutical Products ◽  
Pharmaceutical Market ◽  
Chinese Society ◽  
Drug Problem ◽  
Large Cities ◽  
The Public ◽  
The Government

Since ancient times, fake drugs have been on the market in Chinese society. However, during the Ming-Qing Dynasty, this problem intensified as the size of the pharmaceutical market grew, the collection and distribution structure of pharmaceutical products became increasingly complex, and the phenomenon of separation between the prescription and distribution of drugs advanced. Additionally, the government did not manage the manufacturing or quality of drugs and there was no law or institution designed to solve the problem of fake drugs. Furthermore, social opinion also criticized the widespread problem of fake drugs, and patients and doctors had to rely on various pharmacognostic books and medical knowledge to find reliable drugs in the drug market.<br>Meanwhile, as merchants participated and invested commercial capital in the pharmaceutical industry, large reputable pharmacies began to emerge in large cities and produced drugs. With the commercialization of the pharmaceutical market, the public gained interest in drugs and consumed drugs produced by these pharmacies. Moreover, there were frequent problems in the market as fake drugs imitating popular drugs were distributed and the names of famous pharmacies were stolen. Although fake drugs were a universal social problem, the Qing government was reluctant to strictly control them tried to solve this issue by enforcing banning and punishment through local governments. Prominent pharmacies filed several lawsuits against the government over the theft of fake drugs and drug names. They also advertised the legitimacy and authenticity of drugstore to the public and customers. Doctors and merchants responded to the problem of fake drugs by following occupational morality, developing drug discrimination, cracking down on organizational discipline, filing complaints with government offices, and advertising their authenticity. However, the fake medicines did not easily disappear despite such a response, as there was no state control or legislation. Evidently, the pharmaceutical market was already highly commercialized and its structure were complex. Moreover, the financial benefits of fake drugs, competition in the pharmaceutical market, and public demand for drugs with similar effects at low prices also affected the popularity of fake drugs. Hence, the distribution of fake medicine in the Qing society can be seen as a phenomenon of separation between the prescription and distribution of drugs, commercialization and consumption of drugs, and competition on the medical market.

IMPROVEMENT AND OPTIMIZATION OF COMMODITY POLICY AS A WAY TO INCREASE THE COMPETITIVENESS OF PHARMACIES

2021 ◽  
pp. 18-24
Author(s):  
Berezhnaya E.S.
Keyword(s):  
Prescription Drugs ◽  
Consumer Preferences ◽  
Marketing Research ◽  
Drug Market ◽  
Pharmaceutical Products ◽  
Small Scale ◽  
Pharmaceutical Group ◽  
Pharmaceutical Organization ◽  
Marketing Information ◽  
The Many

Gathering information is a key component of market research marketing. The search and analysis of marketing information is carried out through four auxiliary systems, namely, an internal reporting system, a system for collecting external current marketing information, a system of marketing research and analysis of marketing information. Based on the information received, marketing research of the drug market is carried out and the needs of the population for pharmaceutical products are studied. Among the many areas of marketing research on the activities of pharmacies, the study of the range of sold medical and pharmaceutical goods in order to determine ways to optimize it is of paramount importance. A prerequisite for marketing research is the study of drugs as a product, its main pharmacotherapeutic properties, indications for use, release forms and other merchandising characteristics. It is important to analyze the assessments of consumer properties and indicators of use for each name of medicinal products in the assortment of a pharmaceutical organization. This article provides approaches to the definition of the assortment policy of the enterprise, gives the classification of the assortment of the enterprise «Pharmacy of low prices». The groups of drugs are identified depending on their effect on the pharmacy income. Based on consumer preferences, the main positions of the assortment of pharmacies, which are needed by consumers of the city of Penza and the Penza region, have been determined. Along with determining the optimal assortment of the pharmacy and the number of drugs for each pharmaceutical group on sale, it is important to determine the optimal ratio of drugs for each pharmaceutical group. An algorithm for the formation of a new assortment of the Low-Price Pharmacy enterprise has been developed. Recommendations for improving the assortment policy of the «Low Price Pharmacy» enterprise are offered. The features of pharmaceutical marketing of the market of non-prescription and prescription drugs have been studied. Optimization of the product policy of pharmacy organizations, taking into account the distribution of drugs by pharmaceutical trade groups, will ensure the survival of small-scale retailers in a competitive environment.

Profit-Seeking Behavior of Medical Providers and Generic Competition in the Pharmaceutical Market: Evidence from Taiwan

2013 ◽  
Vol 14 (1) ◽  
pp. 241-275
Author(s):  
Ya-Ming Liu ◽  
Chee-Ruey Hsieh
Keyword(s):  
Health Care ◽  
Market Share ◽  
Prescription Drugs ◽  
Empirical Finding ◽  
Pharmaceutical Market ◽  
Price Ratio ◽  
Medical Providers ◽  
Generic Competition ◽  
Generic Market ◽  
Seeking Behavior

Abstract Promoting competition between brand-name and generic drugs has long been recognized as an approach adopted to save on health care costs. However, there are substantial variations in the extent of the generic competition across countries. This study empirically estimates the determinants of the generic market share in Taiwan, where medical providers are in a position to profit directly from the sale of prescription drugs. Our empirical results point out that the profit-seeking behavior of medical providers plays an important and dominant role behind generic competition in the pharmaceutical market. As a result, there is a positive association between the generic-to-brand price ratio and the generic market share in Taiwan’s pharmaceutical market, which contrasts with the conventional empirical finding that the relationship between the generic-to-brand price ratio and generic market share is negative. An important implication of our study is that the profit-seeking behavior of medical providers undermines the policy effectiveness of using generic competition as the cost containment strategy in the health care market.

scholarly journals FEATURES OF THE RUSSIAN PHARMACEUTICAL MARKET

2021 ◽  
Vol 10 (34) ◽  
Author(s):  
A.I OVOD ◽  
Keyword(s):  
National Security ◽  
Generic Drugs ◽  
Import Substitution ◽  
Pharmaceutical Products ◽  
Pharmaceutical Market ◽  
The Past ◽  
Technical Potential ◽  
The Cost ◽  
Total Sales

The pharmaceutical market in Russia in the current environment is one of the most dynamically developing, which is associated with its high importance for ensuring national security. The change in the foreign policy environment against the background of the events of 2014 showed the negative aspects of the country's previously existing dependence on the import of pharmaceutical products, defining the implementation of the import substitution strategy in the field of drug supply as a long-term benchmark for the development of the industry. However, its implementation actually ran into a number of difficulties, the most important of which is the insufficient level of development of the country's scientific and technical potential in this industry. In the course of the study, the analysis of the main indicators of the dynamics and structure of the domestic pharmaceutical market in physical and value terms, identification of the main trends and their causes was carried out. It has been established that in the past 3 years the domestic pharmaceutical market has been developing, which is confirmed by a steady trend towards an increase in its value from 1.6 to 1.8 trillion. rub. At the same time, generic drugs predominate in the market structure in 2019, accounting for more than 85% of the total number of packs sold, the cost of which amounted to about 60% of the total sales. Consequently, on the Russian pharmaceutical market, there is a tendency towards active distribution of generic drugs of domestic origin, which is due to their price advantage compared to original imported drugs, which are expensive and have problems with implementation under conditions of economic sanctions.

The Pharmaceutical Market and Prescription Drugs in the Federal Republic of Germany: Cross-National Comparisons

1973 ◽  
Vol 3 (2) ◽  
pp. 223-236 ◽  
Author(s):  
R. K. Schicke
Keyword(s):  
Federal Republic ◽  
Prescription Drugs ◽  
The United States ◽  
Pharmaceutical Products ◽  
Pharmaceutical Market ◽  
Dominant Factor ◽  
Federal Republic Of Germany ◽  
Prescription Cost ◽  
Per Capita ◽  
Cross National

This paper examines the pharmaceutical market and prescription drug costs and consumption in the Federal Republic of Germany. Comparisons are made with the experience of other countries. It is argued that the pharmaceutical market in the Federal Republic is characterized by a relative abundance of pharmaceutical products and, as in other countries, is both limited by an inherently oligopolistic supply structure and modified by physician prescribing habits. The distribution system shows a tendency to supplier-administered prices owing to a noncompetitive retail structure, reinforced by the inclination of the statutory health insurance scheme toward price uniformity. Despite relatively higher promotional expenses than noted elsewhere, these factors are not conducive to the more meaningful price competition observed in some other countries with a more diversified distributive sector, such as the United States, or in other systems where tendencies toward oligopsony or near monopsony, e.g. Sweden and the United Kingdom, may provide some counterbalancing mechanisms aimed at the modification of retail prices. Recent per capita cost development is considered in the light of some cross-national comparisons. It is argued that in the countries studied, depending on the level of development, either a per prescription cost push or a cost increase pull due to increased utilization frequency is prevalent. This distinction would tend to refute the occasionally advocated view that cost increases are determined almost exclusively by increasing utilization, whether dynamically or as a function of time. In the Federal Republic, a relatively high level of utilization constitutes the main factor affecting the total per capita drug consumption cost. Nonetheless, owing to a comparatively lower per item cost, total costs are comparable to the outlay observed in some other countries. Both in the Federal Republic and in other countries with relatively stable utilization patterns, changes in the average per prescription cost may in the long run prove to be the dominant factor in the formation of total per capita costs for prescribed drugs.

scholarly journals REGULATORY PERSPECTIVES OF PHARMACEUTICAL PRODUCTS IN GHANA

2018 ◽  
Vol 2 (2) ◽  
pp. 7-15
Author(s):  
Raja Mohan Reddy G. ◽  
M. P. Venkatesh ◽  
Achin J. ◽  
Pramod Kumar T.M.
Keyword(s):  
Regulatory Authority ◽  
Generic Drugs ◽  
Pharmaceutical Products ◽  
Pharmaceutical Product ◽  
Pharmaceutical Market ◽  
Regulatory Requirements ◽  
Drug Products ◽  
Drug Registration ◽  
Good Market ◽  
Gain Access

Drug Registration is a procedure of expertise of pharmaceutical product quality, efficacy and safety by the Regulatory Authority. The emergence of various formats has enabled the manufacturers of the drug to easily gain access into various markets and thus was able to place their products into the market. The choice of Ghana as one of the destinations for the market of the Drug products ensures the manufacturer a good market value. Ghana is considered as one of the growing pharmaceutical market in east Africa. Of late, generic drugs are holding a major stake in the pharmaceutical market and are gaining more and more confidence in the usage. Majority of medicines in the Ghana are generic drugs which are considered as value for the money and affordable. With Ghana Regulatory Authority is the Food and Drugs Board, which takes decision to register the product and issues Registration Certificate. This study mainly focuses on the regulatory environment, registration process involved and the regulatory requirements that are applicable for the generic drug products in Ghana.

Indian Pharmaceutical Industries Current Status and Togetherness to Overcome Speed Breakers in Term of Quality Issues to Make India as a Global Pharma Destination

2020 ◽  
Vol 07 ◽  
Author(s):  
Vikas Rathee ◽  
Kapil Pihwal ◽  
Neelam Pawar ◽  
Sheikh Aamir ◽  
Mohammad Shahbaz Alam ◽  
...  
Keyword(s):  
Generic Drugs ◽  
Regulatory Compliance ◽  
Pharmaceutical Products ◽  
Current Status ◽  
Family Welfare ◽  
United States Dollar ◽  
Doing Business ◽  
Pharmaceutical Industries ◽  
Governmental Control ◽  
Future Plans

: Regulatory is the heart of the Pharmaceutical Industries which acts as an interface between the industries and government authorities for the growth and development of pharmaceutical industry system of their respective country. In 2017, India was a pharmaceutical country valued at USD (United States Dollar) 13 billion and accounting for 20 percent of worldwide exports, making the country the main supplier of generic drugs worldwide. Ministry of Chemicals and Fertilizers, the Department of Pharmaceutical Products said that the national pharmaceutical market's gross revenue reached approximately US $ 18.12 billion in 2018 (Rs 129,015), growing 9.4% year-on-year and export retention in 2018 was US $ 17.88 billion. 19.14 billion US$ in 2019. The Union Ministry of Health and Family Welfare has increased by 13.1 percent to Rs 61,398 crore (US $ 8.98 billion) in the Union Budget 2019-20. The Indian pharmaceutical market is facing many difficulties such as central and state regulatory compliance, data integrity, ethics committee in clinical trials, governmental control over the price of medicine, lack of research and so on. We are discussing in our article that top 10 pharmaceutical companies are doing business, their turnover in 2020 and challenge in today's era. We discuss future plans and solutions to problems, so that they can be ranked first in the world.

Fake Pharmaceuticals: How They and Relevant Legislation or Lack Thereof Contribute to Consistently High and Increasing Drug Prices

2003 ◽  
Vol 29 (4) ◽  
pp. 525-542
Author(s):  
Merri C. Moken
Keyword(s):  
United States ◽  
Prescription Drugs ◽  
The United States ◽  
Pharmaceutical Products ◽  
New Drugs ◽  
Pharmaceutical Companies ◽  
Brand Name ◽  
Potential Factors ◽  
Counterfeit Pharmaceuticals ◽  
New Applications

The use of pharmaceutical products in the United States has increased more than the use of any other health resource from 1960 to 1990. In excess of 9,600 drugs were on the market in 1984, and the Food and Drug Administration (“FDA”) approves approximately 30 new drugs and countless new applications for alterations of already existing drugs each year. In 2001, the $300 billion pharmaceutical industry sold $154 billion worth of prescription drugs in the United States alone, nearly doubling its $78.9 billion in sales in 1997. With such a rapid increase in market domination and expenditures, the U.S. government and many hospitals have focused their attention on the sales and pricing practices of pharmaceutical companies, as well as other potential factors contributing to these escalating prices. One such cause of the steadily increasing prices of brand name pharmaceuticals is the sale of fake or counterfeit pharmaceuticals (also called “look-alike” drugs).

Generic Drugs in the Pharmaceutical Market

2016 ◽  
pp. 443-468
Author(s):  
Mercedes Rozano
Keyword(s):  
Generic Drugs ◽  
Pharmaceutical Market ◽  
National Brands ◽  
Product Categories ◽  
Pharmaceutical Expenditures ◽  
Market Shares ◽  
Generic Market ◽  
Packaged Foods ◽  
Generic Products

Over the past three decades, marketing has increased its interest in studying the role of generic products in the pharmaceutical sector, one that has only recently incorporated the concept of “generic” products, compared to others such as the mass market. Since the emergence of generic products as one of national brands' main competitors, these have shown significant growth in both their market share, as well as in new product categories. Initially, the concept of generic products was limited to categories of packaged foods and later extended to categories such as medicine. Pharmaceutical market presents an opportunity to analyze the expansion of the “generic” concept, in a strongly regulated framework. In Europe, different policies have resulted in a varying development of generic market shares. Today, the sustainability of health system is a matter of increasing concern to European governments. Generic drugs offer an opportunity to contain pharmaceutical expenditures, since generic price are lower than their original brand equivalent. Developing this market is the main objective.

scholarly journals Problems in the regulatory policy of the drug market

2015 ◽  
Vol 49 (0) ◽  
Author(s):  
Nathália Molleis Miziara ◽  
Diogo Rosenthal Coutinho
Keyword(s):  
Drug Market ◽  
Pharmaceutical Market ◽  
Market Regulation ◽  
Point Of Sale ◽  
Drug Prices ◽  
Maximum Price ◽  
Regulatory Law ◽  
Regulation Policy ◽  
The Mean ◽  
Government Body

OBJECTIVE Analyze the implementation of drug price regulation policy by the Drug Market Regulation Chamber.METHODS This is an interview-based study, which was undertaken in 2012, using semi-structured questionnaires with social actors from the pharmaceutical market, the pharmaceuticals industry, consumers and the regulatory agency. In addition, drug prices were compiled based on surveys conducted in the state of Sao Paulo, at the point of sale, between February 2009 and May 2012.RESULTS The mean drug prices charged at the point of sale (pharmacies) were well below the maximum price to the consumer, compared with many drugs sold in Brazil. Between 2009 and 2012, 44 of the 129 prices, corresponding to 99 drugs listed in the database of compiled prices, showed a variation of more than 20.0% in the mean prices at the point of sale and the maximum price to the consumer. In addition, many laboratories have refused to apply the price adequacy coefficient in their sales to government agencies.CONCLUSIONS The regulation implemented by the pharmaceutical market regulator was unable to significantly control prices of marketed drugs, without succeeding to push them to levels lower than those determined by the pharmaceutical industry and failing, therefore, in its objective to promote pharmaceutical support for the public. It is necessary reconstruct the regulatory law to allow market prices to be reduced by the regulator as well as institutional strengthen this government body.

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