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Pharmaceutical Pricing in Europe: Is Differential Pricing a Win-Win Solution?

Martina Garau, Adrian Towse and Patricia Danzon

Occasional Papers from Office of Health Economics

Abstract: This paper examines the potentially positive impact of differential pricing in Europe and the overall negative effects of international reference pricing (IRP) measures. The authors point out that IRP actually encourages higher prices in lower-income countries, can delay marketing/patient access in lower-price countries, and ultimately translates into less investment in R&D. Differential pricing assumes that countries with lower incomes should pay lower prices, encourages the earliest possible marketing in all countries, and provides incentives for innovation.

Keywords: Economics; of; innovation (search for similar items in EconPapers)
JEL-codes: I1 (search for similar items in EconPapers)
Date: 2011-02-01
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Persistent link: https://EconPapers.repec.org/RePEc:ohe:occpap:000191

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