Pharmaceutical companies report that in their dynamic, research and technology intensive industry, competitiveness is synonymous with innovativeness. That is, companies must invest in product research and development (R&D) to stay ahead. To afford this type of strategy, companies seek adequate reimbursement for their time, risk, and investments.
This paper examines the economic aspects of the forces driving the emergence of biotechnology firms, and the implications of this for the organisation of research and development (R&D) and industrial structure in the pharmaceutical industry.
The aim of this paper is to review alternative methods of regulating the price of pharmaceuticals bought by the NHS from the perspective of the experience of the economic regulation of other industries in the UK, notably the privatised utilities. The NHS procures medicines in a variety of ways, subject to different methods of price control, but the main control is on profits via the PPRS.
The purpose of this paper is to examine the welfare arguments for international price differences for pharmaceuticals and the welfare effects of policies that have the effect of eliminating such differences, in particular, parallel trade and regulation based on foreign prices.
Although there is widespread agreement about the important role the pharmaceutical industry plays in the U K economy, there is no easily available source presenting the chief figures in a clear and easily interpretable way. The purpose of this paper is to do precisely that. It is based on serious research and analysis by economists, and provides a perspective within which the industry may be understood, and criticised, and assessed.
This book contains the proceedings o f a conference held by the Office of Health Economics in June 1994. The papers, by a number of distinguished contributors, explore the role industrial policy can play in providing an economic environment in which the pharmaceutical industry meets the needs of patients and health care purchasers, so providing an economic asset to those countries hosting its R&D and manufacturing activity.
The chapters in this book are based on contributions to a seminar organised jointly by the Office of Health Economics and the International Science Policy Foundation, and held at the Royal Society of Medicine in London on 10 December 1992. An account of the discussion which followed each paper is also included. Background notes were circulated to the participants in advance of the meeting and this introduction is largely based on those notes.
It is almost twenty years since I realised the significance of Schumpeter's work to the pharmaceutical industry. But since the references to his conclusions in 'The Canberra hypothesis' in 1975, comparatively little attention has been drawn to the relevance of Schumpeter's theory of 'creative destruction' and the need for shelters against the 'perennial gale' of innovative competition in relation to pharmaceuticals.
Outcomes, it is commonly said by general practitioners, are more difficult to measure in our discipline than those in hospital based specialties. This is true but it should not be used as an excuse for continuing sloppy work, for sufficient measures of outcome do exist to keep practices busy with audit for some time to come. We have good data - arguably the best in the world - about the incidence and prevalence of common disease in the community and where these can be linked to effective treatments we have a very valuable tool indeed.
The objective of medical care is to improve people's health. This includes avoiding illness whenever possible, alleviating suffering and disability when illness does occur, and prolonging life, particularly through the prevention of premature deaths.