ABSTRACT

This chapter presents the results of some studies in order to show evidence of the effects of different policies on a number of variables. When we look at different regulatory systems from a normative or policy perspective, most economists would agree that there is fundamentally a very strong case for trying to retain systems that permit differential pricing for medicines across countries worldwide. The chapter details the results from a study using Intercontinental Medical Statistics data for 249 leading molecules in the United States (US) in 1999. The difference in market structures between the nine countries is that the US has high prices for on-patent originator drugs, but a very large market share and very low prices for the off-patent, unbranded generics. The chapter provides a list of necessary conditions for having a competitive generic market and highlight key features in this regard of US and European regulatory systems.