Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment

Detalhes bibliográficos
Autor(a) principal: Brekke, Kurt R.
Data de Publicação: 2008
Outros Autores: Holmås, Tor Helge, Straume, Odd Rune
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/11663
Resumo: We study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not subject to reference pricing serve as our control group. We find that RP leads to lower relative prices, with the effect being driven by strong brand-name price reductions, and not increases in generic prices. We also find that RP increases generic competition, resulting in lower brand-name market shares. Finally, we show that RP has a strong negative effect on average prices at molecule level, suggesting significant cost-savings.
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spelling Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experimentPharmaceuticalsRegulationGeneric competitionWe study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not subject to reference pricing serve as our control group. We find that RP leads to lower relative prices, with the effect being driven by strong brand-name price reductions, and not increases in generic prices. We also find that RP increases generic competition, resulting in lower brand-name market shares. Finally, we show that RP has a strong negative effect on average prices at molecule level, suggesting significant cost-savings.Fundação para a Ciência e a Tecnologia (FCT) - Programa Operacional Ciência e Inovação 2010 (POCI 2010)Fundo Europeu de Desenvolvimento Regional (FEDER)Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)Universidade do MinhoBrekke, Kurt R.Holmås, Tor HelgeStraume, Odd Rune20082008-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/11663engBREKKE, Kurt R. ; HOLMAS, Tor Helge; STRAUME, Odd Rune – “Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment” [Em linha]. Braga : Núcleo de Investigação em Políticas Económicas, 2008. [Consult. 7 Fev. 2011]. Disponível em WWW:<URL:http://www3.eeg.uminho.pt/economia/nipe/docs/2008/NIPE_WP_1_2008.PDF>.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:05:18Zoai:repositorium.sdum.uminho.pt:1822/11663Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:55:43.093980Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
title Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
spellingShingle Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
Brekke, Kurt R.
Pharmaceuticals
Regulation
Generic competition
title_short Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
title_full Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
title_fullStr Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
title_full_unstemmed Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
title_sort Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment
author Brekke, Kurt R.
author_facet Brekke, Kurt R.
Holmås, Tor Helge
Straume, Odd Rune
author_role author
author2 Holmås, Tor Helge
Straume, Odd Rune
author2_role author
author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Brekke, Kurt R.
Holmås, Tor Helge
Straume, Odd Rune
dc.subject.por.fl_str_mv Pharmaceuticals
Regulation
Generic competition
topic Pharmaceuticals
Regulation
Generic competition
description We study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not subject to reference pricing serve as our control group. We find that RP leads to lower relative prices, with the effect being driven by strong brand-name price reductions, and not increases in generic prices. We also find that RP increases generic competition, resulting in lower brand-name market shares. Finally, we show that RP has a strong negative effect on average prices at molecule level, suggesting significant cost-savings.
publishDate 2008
dc.date.none.fl_str_mv 2008
2008-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/11663
url http://hdl.handle.net/1822/11663
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv BREKKE, Kurt R. ; HOLMAS, Tor Helge; STRAUME, Odd Rune – “Regulation, generic competition and pharmaceutical prices : theory and evidence from a natural experiment” [Em linha]. Braga : Núcleo de Investigação em Políticas Económicas, 2008. [Consult. 7 Fev. 2011]. Disponível em WWW:<URL:http://www3.eeg.uminho.pt/economia/nipe/docs/2008/NIPE_WP_1_2008.PDF>.
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dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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