Pharmaceutical Pricing Policies in a Global Market

image of Pharmaceutical Pricing Policies in a Global Market

Pharmaceutical policy making raises particular challenges in reconciling key objectives for health policy, such as ensuring affordable access to the latest effective drugs, with other important policy considerations, such as providing support to a valuable national industry. Unusually among health policy issues, it also raises international considerations that further complicate decision making, particularly as the nature and extent of such considerations are not well understood.

This report assesses how pharmaceutical pricing and reimbursement policies have contributed to the achievement of certain health policy objectives. It examines the national and transnational effects of these policies, in particular, their implications for the availability of medicines in other countries, the prices of these medicines, and innovation in the pharmaceutical sector.

This publication presents an analysis of comparative price levels, making use of a unique dataset to construct the most comprehensive pan-OECD pharmaceutical price index to date. It also draws upon original case studies of pharmaceutical pricing and reimbursement policies in six OECD countries to provide specific examples of the impacts of policies on health system performance.

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The Impact of Pharmaceutical Pricing Policies on Pharmaceutical Innovation

This chapter describes the determinants of R&D in the pharmaceutical sector and the key factors that contribute to R&D decisions. It next considers the role played by pharmaceutical pricing and reimbursement policies in influencing the level and type of innovation. It evaluates the incentives and disincentives for investment in R&D that may be created by pricing and reimbursement policies, and considers the extent to which these policies also influence the level of financing available for investment.

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