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Pricing and patents of HIV/AIDS drugs in developing countries

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  • Joan-Ramon Borrell

Abstract

This article provides empirical evidence on the impact of patents on drug prices across developing countries. It uses sales data on human immunodeficiency virus (HIV)/acquired immuno deficiency syndrome (AIDS) drugs in a sample of 34 low- and middle-income countries between 1995 and mid-2000. The main findings are that patents do shift drug prices up, drug prices are correlated to per capita income levels and drug firms follow a skimming strategy when pricing new HIV/AIDS drugs. That is, there is across country and intertemporal price discrimination in the global drug markets.

Suggested Citation

  • Joan-Ramon Borrell, 2007. "Pricing and patents of HIV/AIDS drugs in developing countries," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 505-518.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:505-518 DOI: 10.1080/00036840500438954
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    Cited by:

    1. Patrick Leoni & Alvaro Sandroni, 2016. "Can patent duration hinder medical innovation," International Journal of Health Economics and Management, Springer, vol. 16(4), pages 397-406, December.
    2. José Cuesta, 2008. "Does a Mature AIDS Epidemic Threaten Growth?," Research Department Publications 4567, Inter-American Development Bank, Research Department.
    3. José A. Cuesta, 2008. "Does a mature AIDS epidemic threaten growth?," IDB Publications (Working Papers) 1613, Inter-American Development Bank.
    4. José Cuesta, 2008. "¿Una epidemia de SIDA en su etapa madura es una amenaza para el crecimiento?," Research Department Publications 4568, Inter-American Development Bank, Research Department.

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