Match!

The Pharmaceutical Industry — Prices and Progress

Published on Aug 26, 2004in The New England Journal of Medicine70.67
· DOI :10.1056/NEJMhpr040117
Frederic M. Scherer45
Estimated H-index: 45
Sources
Abstract
In this Health Policy Report, the author examines the economics of the pharmaceutical industry. Research-and-development costs, patent laws, and health insurance coverage all influence drug pricing. The author discusses the policy dilemmas resulting from the complex economics of pharmaceutical research and development and reviews potential strategies to control prices.
  • References (17)
  • Citations (99)
📖 Papers frequently viewed together
3,045 Citations
218 Citations
187 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References17
Newest
23 Citations
This paper addresses how and why drug prices differ across countries. Studies of international variation in drug prices reach varied conclusions owing to methodological and data disparities. Price differences do exist across countries, with the United States footing the highest bill, but the differences are not nearly as large as they appear at first glance. The higher prices in the United States are concentrated among a subset of brand-name drugs and among those without insurance covering drugs...
45 CitationsSource
#1Joseph A. DiMasi (Tufts Center for the Study of Drug Development)H-Index: 26
#2Ronald W. Hansen (UR: University of Rochester)H-Index: 7
Last. Henry G. Grabowski (Duke University)H-Index: 39
view all 3 authors...
3,045 CitationsSource
#1Brigitte GranvilleH-Index: 11
Making essential medicines available in developing countries is a pressing international problem. This volume highlights the issues, including perspectives from developed and developing countries, the public and the private sectors. It focuses on health service delivery, as well as research and development issues.
17 Citations
137 CitationsSource
#1Joseph A. DiMasi (Tufts Center for the Study of Drug Development)H-Index: 26
This study examines what is generally regarded to be the most important measure of innovation in the pharmaceutical industry—the extent to which new drugs are developed and marketed by pharmaceutical firms. Pharmaceutical industry output, as measured by new chemical entity (NCE) approvals in the United States since the 1962 Amendments to the Federal Food, Drug, and Cosmetic Act of 1938, is examined at the firm level. This long-term historical perspective permits us to observe the extent to which...
58 CitationsSource
#1Janice M. Reichert (Tufts Center for the Study of Drug Development)H-Index: 38
Abstract The Tufts Center for the Study of Drug Development has collected data on the clinical and approval phases of the 26 new biopharmaceuticals approved by the US Food and Drug Administration between 1980 and 1999. Here, the data for biopharmaceuticals approved between 1995 and 1999 are presented grouped by product category, review status, orphan-drug designation and therapeutic indication, and the mean phase lengths are compared. They are also compared with the data for approvals during the...
35 CitationsSource
#1Kenneth I. Kaitin (Tufts Center for the Study of Drug Development)H-Index: 23
#2Joseph A. DiMasi (Tufts Center for the Study of Drug Development)H-Index: 26
The Prescription Drug User Fee Act of 1992 (PDUFA) is credited with the dramatic reduction in new drug approval times seen since 1993. Despite the faster approval times, however, the total time required for new drugs to reach the marketplace had not changed appreciably. With passage of the FDA Modernization Act of 1997 (FDAMA), the United States Food and Drug Administration (FDA) expanded its focus from shortening the regulatory review phase to helping drug developers reduce lengthy clinical dev...
36 CitationsSource
Abstract This paper draws implications for technology policy from evidence on the size distribution of returns from eight sets of data on inventions and innovations attributable to private sector firms and universities. The distributions are all highly skew; the top 10% of sample members captured from 48 to 93 percent of total sample returns. It follows that programs seeking to advance technology should not be judged negatively if they lead to numerous economic failures; rather, emphasis should ...
376 CitationsSource
#1Wesley M. Cohen (Duke University)H-Index: 32
#2Richard R. Nelson (Columbia University)H-Index: 86
Last. John Walsii (UIC: University of Illinois at Chicago)H-Index: 30
view all 3 authors...
Based on a survey questionnaire administered to 1478 R&D labs in the U.S. manufacturing sector in 1994, we find that firms typically protect the profits due to invention with a range of mechanisms, including patents, secrecy, lead time advantages and the use of complementary marketing and manufacturing capabilities. Of these mechanisms, however, patents tend to be the least emphasized by firms in the majority of manufacturing industries, and secrecy and lead time tend to be emphasized most heavi...
2,103 CitationsSource
Cited By99
Newest
#1Kiu Tay-Teo (WHO: World Health Organization)H-Index: 2
#2André M. Ilbawi (WHO: World Health Organization)H-Index: 7
Last. Suzanne Hill (WHO: World Health Organization)H-Index: 31
view all 3 authors...
Importance High costs and risks of research and development (RD n = 56). Cancer drugs continued to generate billion-dollar returns for the originator companies after the end-of-market exclusivity, particularly for biologics. Conclusions and Relevance Cancer drugs, through high prices, have generated returns for the originator companies far in excess of possible R&D costs. Lowering prices of cancer drugs and facilitating greater competition are essential for improving patient access, health syste...
2 CitationsSource
#1Rafael Fonseca (Mayo Clinic)H-Index: 92
#2Desi Peneva (Precision Health Economics)H-Index: 7
Last. Anupam B. Jena (Harvard University)H-Index: 32
view all 5 authors...
Source
#1Jeromie M Ballreich (Johns Hopkins University)H-Index: 5
#2G. Caleb Alexander (Johns Hopkins University)H-Index: 43
Last. Gerard F. AndersonH-Index: 62
view all 5 authors...
Background High drug spending is a concern for policy makers due to limits on access for patients. Numerous policies have been proposed to address high drug spending. The existence of multifarious proposals makes it difficult for policy makers to consider all the alternatives. We developed an approach to select the most viable options to present to policy makers.
1 CitationsSource
#1Daron Acemoglu (MIT: Massachusetts Institute of Technology)H-Index: 103
#2James A. Robinson (U of C: University of Chicago)H-Index: 59
Last. Thierry Verdier (PSE: Paris School of Economics)H-Index: 45
view all 3 authors...
We present a model of technologically interconnected countries that benefit and potentially contribute to advances in the world technology frontier. Greater inequality between successful and unsuccessful entrepreneurs increases entrepreneurial effort and a country’s contribution to that frontier. Under plausible assumptions, the world equilibrium is asymmetric, involving different economic institutions and technology levels for different countries. Some countries become technology leaders and op...
18 CitationsSource
#1Arslan Ahmad Siddiqi (CUI: COMSATS Institute of Information Technology)H-Index: 1
#2Syed Zulfiqar Ali Shah (CUI: COMSATS Institute of Information Technology)H-Index: 11
Purpose Pharmaceutical marketers and manufactures create hype of demand among patients towards a specific brand of drug or disease through drug advertisements. It induces the patients to seek additional information of the brand and ask for its prescription generation by the physician. The paper aims to determine the attitude of the physicians towards direct to consumer advertising (DTCA) and to examine the extent of patients’ request for a specific brand which leads to actual prescription genera...
3 CitationsSource
#1Omid Moshtaghi (UCI: University of California, Irvine)H-Index: 7
#2Yarah M. Haidar (UCI: University of California, Irvine)H-Index: 6
Last. Hamid R. Djalilian (UCI: University of California, Irvine)H-Index: 20
view all 9 authors...
Objectives/Hypothesis To evaluate the variability and discrepancies among the most commonly prescribed ear drops sold at pharmacies in southern California. Study Design Prospective study evaluating 11 commonly used ear drops to treat otologic disorders. Methods Randomly selected drug stores in three major counties in Southern California (Los Angeles, Orange, and San Diego) were included. Mean, range, minimum, and maximum prices for each drug were calculated and analyzed. The median income of pha...
3 CitationsSource
#1Pierre-Alexandre Dionne (Université de Sherbrooke)H-Index: 5
#2F. Ali (Pfizer)H-Index: 1
Last. Mendel Grobler (Pfizer)H-Index: 3
view all 3 authors...
Source
#1Anna Wolters (UM: Maastricht University)H-Index: 2
#2Guido de Wert (UM: Maastricht University)H-Index: 25
Last. Klasien Horstman (UM: Maastricht University)H-Index: 13
view all 4 authors...
1 CitationsSource
8 CitationsSource
#1Earlene LipowskiH-Index: 10
Source