The effect of RCTs on drug demand: Evidence from off-label cancer drugs

Rebecca McKibbin

Journal of Health Economics, 2023, vol. 90, issue C

Abstract: This paper investigates the effect of scientific information from randomized controlled clinical trials (RCTs) on the demand for off-label uses of cancer drugs. This is a unique setting where demand for a drug for a specific use is observable both before and after the first RCT results are released. Using variation in the timing of RCTs across off-label uses of drugs, I find that demand responds asymmetrically to the trial results based on the statistical significance of the clinically relevant endpoint. When this endpoint is statistically significant, there is a large and immediate increase in demand. When this end point is not statistically significant, physicians are relatively slow to abandon use of the drug.

Keywords: Pharmaceuticals; Off-label prescribing; Cancer; Healthcare economics; Regulation (search for similar items in EconPapers)
JEL-codes: I11 I18 L51 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:90:y:2023:i:c:s0167629623000565

DOI: 10.1016/j.jhealeco.2023.102779

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