Pricing and patents of HIV/AIDS drugs in developing countries

Joan-Ramon Borrell

Applied Economics, 2007, vol. 39, issue 4, 505-518

Abstract: This article provides empirical evidence on the impact of patents on drug prices across developing countries. It uses sales data on human immunodeficiency virus (HIV)/acquired immuno deficiency syndrome (AIDS) drugs in a sample of 34 low- and middle-income countries between 1995 and mid-2000. The main findings are that patents do shift drug prices up, drug prices are correlated to per capita income levels and drug firms follow a skimming strategy when pricing new HIV/AIDS drugs. That is, there is across country and intertemporal price discrimination in the global drug markets.

Date: 2007
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DOI: 10.1080/00036840500438954

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