Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Topics:
European Union (EU); Lipitor; Drug price regulations in Europe; Health care systems in Europe; National Health Services in Europe; Reference pricing; Profit regulation; Product price controls; New molecular entities (NMEs); Research and development (R&D) investments in European drug industry; Pfizer Inc; Tamoxifen; Novartis; Monopsonist price setter; Drug price distortions
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https://casecent.re/p/19145
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Abstract
Due to lower drug prices in the European Union (EU), by the turn of the 21st century the per capita spending on drugs in Europe had been much less when compared to that in the US. Lower drug prices in Europe had resulted in cumulative savings of $1 trillion since 1992. Although such huge savings were apparently lucrative, it was opined that Europe would be losing out to the US in the long run as higher drug prices in the US made it a more lucrative market for the drug makers. It was also opined that due to a higher probability of realising the money invested in the research and development of new drugs in the US, more and more drug manufacturers would shift their research centres to the US resulting in research and development job losses in Europe.
About
Abstract
Due to lower drug prices in the European Union (EU), by the turn of the 21st century the per capita spending on drugs in Europe had been much less when compared to that in the US. Lower drug prices in Europe had resulted in cumulative savings of $1 trillion since 1992. Although such huge savings were apparently lucrative, it was opined that Europe would be losing out to the US in the long run as higher drug prices in the US made it a more lucrative market for the drug makers. It was also opined that due to a higher probability of realising the money invested in the research and development of new drugs in the US, more and more drug manufacturers would shift their research centres to the US resulting in research and development job losses in Europe.