THE DETERMINANTS OF PRICING IN PHARMACEUTICALS: ARE US PRICES REALLY SO HIGH?

Antonio Cabrales and Sergi Jiménez‐Martín
Authors registered in the RePEc Author Service: Sergi Jimenez-Martin

Health Economics, 2013, vol. 22, issue 11, 1377-1397

Abstract: This paper studies price determination in pharmaceutical markets using data for 25 countries, 6 years, and a comprehensive list of products from the MIDAS IMS database. A key finding is that the USA has prices that are not significantly higher than those of countries with similar income levels, especially those that are ‘lightly regulated’. More importantly, price differences to the US levels increase for ‘branded’, world top selling, or innovative products, and decrease, regardless of the level of regulation for mature or widely diffused molecules. Because prices for top selling molecules may be easier to perceive and recollect and more important for companies, they may bias the public discussion about international price differences. Copyright © 2013 John Wiley & Sons, Ltd.

Date: 2013
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Citations: View citations in EconPapers (9)

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https://doi.org/10.1002/hec.2887

Related works:
Working Paper: The Determinants of Pricing in Pharmaceuticals: Are U.S. prices really so high? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:22:y:2013:i:11:p:1377-1397

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