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Reference prices: The Spanish way

Author

Listed:
  • Jorge Mestre

    (Office of Health Economics (UK))

Abstract

The aim of this paper is to analyse the effects of recent regulatory reforms implemented in the Spanish pharmaceutical market: the promotion of generic drugs and the implementation of reference prices. The objectives of such reforms are twofold: firstly, to increase price competition and secondly, to reduce public pharmaceutical costs. This paper shows that for the Spanish method of implementing reference prices to achieve these objectives, compared to a situation with copayments, requires the reference price to be set in a certain interval. In addition, the Spanish system may result in profits for the branded and generic producers being reduced

Suggested Citation

  • Jorge Mestre, 2003. "Reference prices: The Spanish way," Investigaciones Economicas, Fundación SEPI, vol. 27(1), pages 125-149, January.
    • Handle: RePEc:iec:inveco:v:27:y:2003:i:1:p:125-149
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    Citations

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    Cited by:

    1. F. Antoñanzas & C. A. Juárez-Castelló & R. Rodríguez-Ibeas, 2017. "Endogenous versus exogenous generic reference pricing for pharmaceuticals," International Journal of Health Economics and Management, Springer, vol. 17(4), pages 413-432, December.
    2. Herr, A. & Suppliet, M., 2011. "Co-Payment Exemptions and Reference Prices: an Empirical Study of Pharmaceutical Prices in Germany," Health, Econometrics and Data Group (HEDG) Working Papers 11/18, HEDG, c/o Department of Economics, University of York.
    3. David Granlund & Miyase Koksal-Ayhan, 2015. "Parallel imports and a mandatory substitution reform: a kick or a muff for price competition in pharmaceuticals?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(9), pages 969-983, December.
    4. Kaiser, Ulrich & Mendez, Susan J. & Rønde, Thomas & Ullrich, Hannes, 2014. "Regulation of pharmaceutical prices: Evidence from a reference price reform in Denmark," Journal of Health Economics, Elsevier, vol. 36(C), pages 174-187.
    5. Granlund, David & Köksal, Miyase Yesim, 2011. "Parallel Imports and Mandatory Substitution Reform - A Kick or A Muff for Price Competition in Pharmaceuticals?," HUI Working Papers 49, HUI Research.
    6. Anna Merino, 2000. "The impact of the reference price system on the pharmaceutical market: A theoretical approach," Economics Working Papers 524, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2003.
    7. Granlund, David & Köksal , Miyase Yesim, 2011. "Parallel Imports and Mandatory Substitution Reform - A Kick or A Muff for Price Competition in Pharmaceuticals?," Umeå Economic Studies 824, Umeå University, Department of Economics.
    8. Yesim Köksal, Miyase, 2009. "REFERENCE PRICING - Making Parallel Trade in Pharmaceuticals Work," Working Papers in Economics 367, University of Gothenburg, Department of Economics, revised 01 May 2011.
    9. Matteo Galizzi & Simone Ghislandi & Marisa Miraldo, 2011. "Effects of Reference Pricing in Pharmaceutical Markets," PharmacoEconomics, Springer, vol. 29(1), pages 17-33, January.
    10. Miraldo, Marisa, 2009. "Reference pricing and firms' pricing strategies," Journal of Health Economics, Elsevier, vol. 28(1), pages 176-197, January.
    11. Granlund, David & Yesim Köksal, Miyase, 2011. "Parallel Imports and Mandatory Substitution Reform: A kick or a muff for price competition in pharmaceuticals," Working Papers in Economics 496, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Reference prices; copayments; generics; pharmaceutical industry;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L00 - Industrial Organization - - General - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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