Healthy Skepticism Library item: 19157

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Galizzi MM, Ghislandi S, Miraldo M
Effects of refer ence pricing in pharmaceutical markets: a review
Pharmacoeconomics 2011 Jan; 29:(1):17-33
http://www.genericsamples.com/wp/effects-of-reference-pricing-in-pharmaceutical-markets-a-review/

Abstract:

This work aims to provide a
systematic and updated survey of
original scientific studies on the
effect of the introduction of
reference pricing (RP) policies in
Organisation for Economic
Co-operation and Development (OECD)
countries. We searched PubMed,
EconLit and Web of Knowledge for
articles on RP. We reviewed studies
that met the inclusion criteria
established in the search strategy.
>From a total of 468 references, we
selected the 35 that met all of the
inclusion criteria. Some common
themes emerged in the literature.
The first was that RP was generally
associated with a decrease in the
prices of the drugs subject to the
policy. In particular, price drops
seem to have been experienced in
virtually every country that
implemented a generic RP (GRP)
policy. A GRP policy applies only to
products with expired patents and
generic competition, and clusters
drugs according to chemical
equivalence (same form and active
compound). More significant price
decreases were observed in the
sub-markets in which drugs were
already facing generic competition
prior to RP. Price drops varied
widely according to the amount of
generic competition and industrial
strategies: brand-named drugs
originally priced above RP values
decreased their prices to a greater
extent. A second common theme was
that both therapeutic RP (TRP) and
GRP have been associated with
significant and consistent savings
in the first years of application. A
third general result is that generic
market shares significantly
increased whenever the firms
producing brand-named drugs did not
adopt one of the following
strategies: lowering prices to RP
values; launching new dosages and/or
formulations; or marketing
substitute drugs still under patent
protection. Finally, concerning TRP,
although more evidence is needed,
studies based on a large number of
patient-level observations showed no
association between the RP policy
and health outcomes.