External referencing and pharmaceutical price negotiation

Begoña Garcia Mariñoso, Izabela Jelovac and Pau Olivella
Additional contact information
Begoña Garcia Mariñoso: CMT - Comisión del Mercado de las Telecomunicaciones - Comisión del Mercado de las Telecomunicaciones

Post-Print from HAL

Abstract: External referencing (ER) imposes a price cap for pharmaceuticals based on prices of identical products in foreign countries. Suppose a foreign country (F) negotiates prices with a pharmaceutical firm while a home country (H) can either negotiate independently or implement ER based on the foreign price. We show that country H always prefers ER if (i) it can condition ER on the drug being subsidized in the foreign country and (ii) copayments are higher in H than in F. H's preference isreinforced when the difference between country copayments is large and/or H's population is small. External referencing by H always harms F if (ii) holds, but less so if (i) holds.

Keywords: pharmaceuticals; external referencing; price negotiation (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00303682
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Published in Health Economics, 2011, 20 (6), pp. 737-756. ⟨10.1002/hec.1630⟩

Downloads: (external link)
https://shs.hal.science/halshs-00303682/document (application/pdf)

Related works:
Journal Article: External referencing and pharmaceutical price negotiation (2011)
Working Paper: External referencing and pharmaceutical price negotiation (2010)
Working Paper: External referencing and pharmaceutical price negotiation (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00303682

DOI: 10.1002/hec.1630

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().