Stuart O. Schweitzer and Z. John Lu
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Description
Pharmaceuticals play a critical role in the raging debate over how best to advance and improve healthcare in the United States and the rest of the world. Using the analytical tools of economics, this book explores the conflicting priorities and aims of the biopharmaceutical industry. It starts out by describing the supply side of pharmaceuticals in all its forms, including the traditional pharmaceutical sector, the biotechnology sector, and the generic sector, as well as the increased blending among them. It next turns to the demand side, looking at the determinants of demand for pharmaceutical products. It discusses third-party payer coverage and patient access issues, and considers pharmaceutical demand factors in both emerging markets and industrialized parts of the world. Drawing extensively from recent economics and policy literatures, this book examines if and how a drug’s pricing strategy is influenced by clinical and economic attributes, characteristics of third-party payers, cost of research and development, competition from other branded drugs and generics, and other factors. An in-depth analysis looks at various drug promotional programs, their effectiveness in influencing demand and price, and the corresponding controversies and ensuing public debates. The focus of the book then turns toward pharmaceutical regulation, including the patent system, the approval process for both branded and generic drugs, the regulation of drug promotion, and major drug legislations since the beginning of the twentieth century. The book concludes by offering a look ahead at evolving industry structure, research methods, product characteristics, financing mechanisms, and regulatory policies affecting both price and access to pharmaceuticals worldwide.
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