The Pharmaceutical Industry and Health Reform: Lessons From Europe

Hutton, John; Borowitz, Michael J.; Oleksy, Inga; Luce, Bryan R.

doi:10.1377/hlthaff.13.3.98

Cited by 21 publications

(13 citation statements)

References 3 publications

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“…In an era of cost containment, the need for rigorous examination of the cost-effectiveness of drugs, as well as their clinical effectiveness, is widely recognized not only by governments but also by the pharmaceutical industry [1-4]. Messages framed differently, but with the same basic content, have reached the community of prescribing physicians, who have come to understand that, although an effective drug may be prescribed for patients who would benefit from it, unless the drug is cost-effective, the resources that are expended might produce greater benefits for other patients.…”

Section: Introductionmentioning

confidence: 99%

Equivalence and noninferiority trials – are they viable alternatives for registration of new drugs? (III)

Pater

2004

Trials

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The scientific community's reliance on active-controlled trials is steadily increasing, as widespread agreement emerges concerning the role of these trials as viable alternatives to placebo trials. These trials present substantial challenges with regard to design and interpretation as their complexity increases, and the potential need for larger sample sizes impacts the cost and time variables of the drug development process. The potential efficacy and safety benefits derived from these trials may never be demonstrated by other methods. Active-controlled trials can develop valuable data to inform both prescribers and patients about the dose-and time-dependent actions of any new drug and can contribute to the management and communication of risks associated with the relevant therapeutic products.

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Section: Introductionmentioning

confidence: 99%

Equivalence and noninferiority trials – are they viable alternatives for registration of new drugs? (III)

Pater

2004

Trials

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“…As described by Hutton et al (1994), it is also clear from European examples that policy changes within the health sector, through more flexible pricing, might have a significant impact on both the current revenues of pharmaceutical companies and future R&D decisions and expenditure (even if they will not become apparent for several years). Companies have also become able to recognize the features of the innovation process even for developed products that hardly contribute to the profitability of the company (Hutton et al, 1994). In addition, patent-based protection of intellectual property rights is of paramount importance in order to maintain the effectiveness of intensive R&D expenditures (Kovács, 2018).…”

Section: Sectoral Characteristics and The Role Of Randdandi In Profitabilitymentioning

confidence: 99%

Profitability of Pharmaceutical Companies in the Visegrád Countries

Fenyves¹,

Nyul²,

Dajnoki³

et al. 2019

Montenegrin Journal of Economics

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The pharmaceutical sector is one of the most profitable industries in the world, despite the very high proportion of the required research and development costs that determine the activity itself and the high risks involved in investing in them. In addition to a number of industry-specific characteristics, the innovation policies of each country might also have a significant impact on the efficiency of pharmaceutical companies. The primary aim of the research was to demonstrate this effect in the case of the Visegrád countries. The ROE seemed to best reflect the ownership interests and the combined effect of other profitability ratios and it was confirmed by analysis of variance. The analysis was based on the EMIS corporate database; multivariate statistical methods were applied to demonstrate the reaching of indicator trends, and from among those methods regression analysis was applied in particular. Based on the findings, it was concluded that primarily the more profitable pharmaceutical companies were able to utilize their assets more efficiently, while manufacturers in the latter category financed their operations with external capital to a lower extent. Although the indicators of the analysed companies showed a very high standard deviation in all four countries, the results of the regression were only outstanding in Slovakia, which had a very low number of cases. In addition, temporal tendencies have been almost the same in the entire region, which was also influenced by the fact that return on capital of the business entities within the sector decreased by 2016 throughout the region. JEL classification:C12, C21, C25, C55.

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“…Licensing may be “ultimately the most powerful economic control as it can exclude products from the market,”1 and an increasing number of countries include economic factors when deciding whether to reimburse products. Many governments may restrict publicly reimbursed drugs by positive lists (Australia, New Zealand, Italy, France) or negative lists (Germany, Ireland, the Netherlands, Spain, United Kingdom).…”

Section: Licensing and Reimbursementmentioning

confidence: 99%

“…Regulation of profits avoids the need to identify separately the costs of research and development and other costs for each product 1. However it may result in perverse incentives, in particular by reducing inducements to control costs.…”

Section: Price Controlsmentioning

confidence: 99%