Economics of Industry

This presentation to the Australian Society for Antimicrobials (ASA) meeting in Melbourne, on 27th February 2020 draws on OHE research, funded by the Wellcome Trust, on adapting HTA methods and contracting for new antibiotics. It analyses UK (NICE and NHSE) plans to introduce a subscription model (delinking use of new antibiotics from payments for making the products available) and suggests that Australia could also pilot such an approach.

People living in Middle and Low Income Countries (MLICs) do not get access to innovative treatments and new treatments meeting MLIC requirements do not come to market. These issues should be addressed through a demand-side approach— better payer policy in MLICs, supported by international actors, to speed development and dissemination. An Innovation Uptake Institute (IUI) can serve as an honest broker between country payers and suppliers.

Berdud, M., Garau, M., Neri, M., O'Neill, P., Sampson, C. and Towse, A.

Research Paper
July 2018

Using a multidisciplinary methodological approach combining a theoretical economic framework with uptake/market share analyses by country and interviews, this OHE research concludes that: (i) IP incentives for R&D may have encouraged a high degree of in-class competition of DAAs close to the first entrant launch; (ii) in-class competition had a positive impact on uptake and adoption of DAAs in the top-5 European countries and; (iii) although in-class competition is a necessary condition for early adoption and fast uptake of innovative medicines, it is not sufficient as there are other factors related to the performance of the new technology, characteristics of the healthcare system and political factors which can have an effect.

Towse, A., Hernandez-Villafuerte, K. and Shaw, B.
Consulting Report
May 2018

This OHE Consulting Report reviews “Estimated costs of production and potential prices of medicines for the World Health Organization Essential Medicines List” (Hill et al., 2018) in which the authors argue for “greater transparency in drug pricing” and propose generating estimates of the cost of manufacturing essential medicines to inform negotiations on drug pricing.

OHE Consulting produces a report critiquing a paper by Hill et al. (2018) on estimated costs of production for the WHO Essential Medicines List.

OHE Consulting has produced a report summarising the literature on indication-based pricing and how it has been applied in the U.S. and 5 European countries.

OHE is on RePEc: find publications from the Office of Health Economics in Research Papers in Economics.

Owen. G and Hopkins, M.

Seminar Briefing
April 2018

This seminar briefing examines (1) why the UK has not produced large biotech firms that develop drugs, similar to those in the United States (US), (2) why the UK biotech firms that do exist have not brought blockbuster drugs to the market and (3) what the implications are for industrial strategy after Brexit. These remarks are based primarily on research we completed for our recent book, Science, the State and the City (Owen and Hopkins, 2016), with some additions and specific observations about the potential effects of Brexit.

Ferraro, J., Towse, A., and Mestre-Ferrandiz, J.

Briefing
May 2017

Resistance to antibiotics is growing, posing a major health risk in rich and poor countries. Additional ways of rewarding R&D are required.

Mechanisms designed to encourage companies to undertake R&D on new medicines are generally characterised as either “push” or “pull” programs.

Mestre-Ferrandiz, J., Towse, A., Dellamano, R. and Pistollato, M.

Seminar Briefing
October 2015

Multi-indication pricing (MIP) involves setting a different price for each major indication approved for a medicine. As value is likely to differ across major indications, if prices paid for on-patent medicines are to reflect their value, then multi-indication medicines should have different prices across major indication, reflecting different values.

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