Reference prices: the spanish way

The aim of this paper is to analyse the effects of recent regulatory reforms that Spanish Health Authorities have implemented in the pharmaceutical market: the introduction of a reference price system together with the promotion of generic drugs. The main objectives of these two reforms are to increase price competition and, ultimately, reduce pharmaceutical costs. Before the introduction of reference prices, consumers had to pay a fixed copayment of the price of whatever drug purchased. With the introduction of such system, the situation differs in the following way: if (s)he buys the more expensive branded drug, then (s)he pays a sum of two elements: the copayment associated to the reference price plus the difference between the price of this good and the reference price. However, if the consumer decides to buy the generic alternative, with price lower than the reference price, then (s)he has to pay the same copayment as before. We show that the introduction of a reference price system together with the promotion of generic drugs increase price competition and lower pharmaceutical costs only if the reference price is set in a certain interval. Also profits for the duopolists might be reduced. These results are due to the opposing effects that reference prices have on branded and generic producers respectively.

La Investigació farmacèutica i les seves dues realitats : malària vs. hipertensió

El món està mal repartit, això és evident. La qüestió és: fins a quin punt? El treball que segueix a continuació pretén estudiar aquest mal repartiment a través d'un àmbit concret: el de la indústria farmacèutica.Els recursos per a la investigació farmacèutica sovint es destinen a finalitats que estan lluny d'aconseguir benestar pel màxim nombre de persones possible. En canvi, es destinen allà on hi ha més possibilitat d'obtenir uns elevats rendiments econòmics. Malgrat no haver-hi dades concretes que evidenciïn aquest fet, sí que n'hi ha d'indirectes que ens ajudaran a esbrinar-ho.En l'estudi es posa en evidència les enormes discriminacions que pateixen diferents tipus de malalties, així com també algunes solucions que permetrien arreglar el problema, però que no es duen a terme. A més, ens endinsem en el món de la indústria farmacèutica a partir de dos països i dues malalties que mostren de primera mà la situació de la indústria farmacèutica mundial.

Patentes, regulación de precios e innovación en la industria farmacéutica

The trade-off between property rights/price regulation and innovation depends on countrycharacteristics and drug industry specificities. Access to drugs and innovation can bereconciled by seven ways that, among others, include: public health strengthening in thecountries with the largest access problems (those among the poor with the weakestinstitutions); public and private aid to make attractive R&D on neglected diseases; pricediscrimination with market segmentation; to require patent owners to choose eitherprotection in the rich countries or protection in the poor countries (but not both).Regarding price regulation, after a review of theoretical arguments and empirical evidence,seven strategies to reconcile health and industrial considerations are outlined, including:mitigation of the medical profession dependence on the pharmaceutical industry; considerationof a drug as an input of a production process; split drug authorization from public fundingdecisions; establish an efficiency minimum for all health production inputs; and stop theEuropean R&D hemorrhagia.