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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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    References listed on IDEAS

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    1. Ernst R. Berndt & Robert S. Pindyck & Pierre Azoulay, 2003. "Consumption Externalities and Diffusion in Pharmaceutical Markets: Antiulcer Drugs," Journal of Industrial Economics, Wiley Blackwell, vol. 51(2), pages 243-270, June.
    2. Iain M. Cockburn & Aslam H. Anis, 2001. "Hedonic Analysis of Arthritis Drugs," NBER Chapters,in: Medical Care Output and Productivity, pages 439-462 National Bureau of Economic Research, Inc.
    3. Judith K. Hellerstein, 1994. "The Demand for Post-Patent Prescription Pharmaceuticals," NBER Working Papers 4981, National Bureau of Economic Research, Inc.
    4. Berndt, Ernst R. & Pindyck, Robert S. & Azoulay, Pierre, 1970-, 1998. "Network effects and diffusion in pharmaceutical markets : antiulcer drugs," Working papers WP 4059-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Joan-Ramon Borrell & Jayashree Watal, 2002. "Impact of Patents on Access to HIV/AIDS Drugs in Developing Countries," CID Working Papers 92, Center for International Development at Harvard University.
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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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