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Advisor(s)
Abstract(s)
This paper looks at producers of branded and generic pharmaceuticals’ pricing
decisions under two possible reimbursement schemes—reference pricing and fixed percentage
reimbursement—and under two settings—one where the branded producer only sells the
(off-patent) branded pharmaceutical and another where, in addition, it may also sell its own
generic version, a so called pseudo-generic. We find different pricing responses from firms
under the two reimbursement schemes and across the two settings analysed (with or without
a pseudo-generic), and show that pseudo-generics may have an anticompetitive effect.
Our results have important policy implications such as showing that the presence of pseudogenerics
reinforces reference pricing’s advantages over alternative reimbursement schemes
Description
Keywords
Pseudo-generic Reference pricing Reimbursement schemes
Pedagogical Context
Citation
GONÇALVES, Ricardo; RODRIGUES, Vasco; VASCONCELOS, Hélder - Reference pricing in the presence of pseudo-generics. International Journal of Health Economics and Management. ISSN 2199-9023. Vol. 15 (2015), p.:281–305
Publisher
Springer