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

Garau, M., Towse, A. and Danzon, P.

Occasional Paper
February 2011

Sign Up for OHE Updates

Why not sign up for our email updates? Around once or twice a week we will send you a round-up of the latest news, events and publications from OHE.

I'm already signed up    No thanks

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.