Assessing the Impact of Global Price Interdependencies

Overview

Journal Pharmacoeconomics

Specialty Pharmacology

Date 2008 Jul 16

PMID 18620459

Citations 3

Authors

Anke Richter

Affiliations

Soon will be listed here.

Abstract

Documented launch delays and the ensuing debate over their underlying causes have focused on assessment from the individual country's perspective. Seen in a larger game theoretical framework this may cause problems, because although the countries see an individual game, the pharmaceutical firm sees a repeated linked game. The links are due to external reference pricing and parallel trade. Behaviours that are optimal in the single, individual game (for either the country or the pharmaceutical firm) may no longer be optimal when considering the global repeated game. A theoretical mixed integer linear model of the firm's launch and pricing decisions is presented along with examples wherein international price dependencies most likely played a role. This model can help countries understand the implication of their external reference pricing policies on the global repeated pricing game. Understanding the behaviour of the pharmaceutical firm in this global context aids countries in designing policies to maximize the welfare of their citizens.

Citing Articles

International reference pricing of pharmaceuticals in the United States: Implications for potentially curative treatments.

Sullivan S, Sullivan K, Dabbous O, Garrison L J Manag Care Spec Pharm. 2022; 28(5):566-572.

PMID: 35471069 PMC: 10373031. DOI: 10.18553/jmcp.2022.28.5.566.

Impact of external price referencing on medicine prices - a price comparison among 14 European countries.

Leopold C, Mantel-Teeuwisse A, Seyfang L, Vogler S, de Joncheere K, Laing R South Med Rev. 2013; 5(2):34-41.

PMID: 23532710 PMC: 3606937.

Temporary authorization for use: does the French patient access programme for unlicensed medicines impact market access after formal licensing?.

Degrassat-Theas A, Paubel P, de Curzon O, Le Pen C, Sinegre M Pharmacoeconomics. 2013; 31(4):335-43.

PMID: 23529210 DOI: 10.1007/s40273-013-0039-4.

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