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Diffusion of Pharmaceuticals: Cross-Country Evidence of Anti-TNF drugs

  • Brekke, Kurt R.

    ()

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Dalen, Dag Morten

    ()

    (Department of Economics, Norwegian Business School,)

  • Holmås, Tor Helge

    ()

    (UNI Rokkan Centre)

This paper studies the diffusion of biopharmaceuticals across European countries, focusing on anti-TNF drugs, which are used to treat autoimmune diseases (e.g., rheumatism, psoriasis). We use detailed sales information on the three brands Remicade, Enbrel and Humira for nine European countries covering the period from the fi…rst launch in 2000 until becoming blockbusters in 2009. Descriptive statistics reveal largevariations across countries in per-capita consumption and price levels both overall and at brand level. We explore potential sources for the cross-country consumption differences by estimating several multivariate regression models. Our results show that large parts of the cross-country variation are explained by time-invariant country-speci…c factors (e.g., disease prevalence, demographics, health care system). We also fi…nd that differences in income (GDP per capita) and health spending (share of GDP) explain the cross-country variation in consumption, while relative price differences seem to have limited impact.

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Paper provided by Department of Economics, Norwegian School of Economics in its series Discussion Paper Series in Economics with number 7/2013.

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Length: 23 pages
Date of creation: 28 Mar 2013
Date of revision:
Handle: RePEc:hhs:nhheco:2013_007
Contact details of provider: Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
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Web page: http://www.nhh.no/sam/
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  1. J. Smolen & D. Aletaha, 2008. "The burden of rheumatoid arthritis and access to treatment: a medical overview," The European Journal of Health Economics, Springer, vol. 8(2), pages 39-47, January.
  2. Dag Dalen & Kari Furu & Marilena Locatelli & Steinar Strøm, 2011. "Generic substitution: micro evidence from register data in Norway," The European Journal of Health Economics, Springer, vol. 12(1), pages 49-59, February.
  3. B. Jönsson & G. Kobelt & J. Smolen, 2008. "The burden of rheumatoid arthritis and access to treatment: uptake of new therapies," The European Journal of Health Economics, Springer, vol. 8(2), pages 61-86, January.
  4. Ernst R. Berndt & Robert S. Pindyck & Pierre Azoulay, 2000. "Consumption Externalities and Diffusion in Pharmaceutical Markets: Antiulcer Drugs," NBER Working Papers 7772, National Bureau of Economic Research, Inc.
  5. Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
  6. J. Lundkvist & F. Kastäng & G. Kobelt, 2008. "The burden of rheumatoid arthritis and access to treatment: health burden and costs," The European Journal of Health Economics, Springer, vol. 8(2), pages 49-60, January.
  7. Brekke, Kurt R. & Grasdal, Astrid L. & Holmås, Tor Helge, 2006. "Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?," Working Papers in Economics 14/06, University of Bergen, Department of Economics.
  8. Margaret K. Kyle, 2007. "Pharmaceutical Price Controls and Entry Strategies," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 88-99, February.
  9. J. Lundqvist & F. Kastäng & G. Kobelt & B. Jönsson, 2008. "The burden of rheumatoid arthritis and access to treatment: determinants of access," The European Journal of Health Economics, Springer, vol. 8(2), pages 87-93, January.
  10. Brekke, Kurt R. & Holmas, Tor Helge & Straume, Odd Rune, 2011. "Reference pricing, competition, and pharmaceutical expenditures: Theory and evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 624-638, August.
  11. G. Kobelt & B. Jönsson, 2008. "The burden of rheumatoid arthritis and access to treatment: outcome and cost-utility of treatments," The European Journal of Health Economics, Springer, vol. 8(2), pages 95-106, January.
  12. Ernst R. Berndt & Patricia M. Danzon & Gregory B. Kruse, 2007. "Dynamic competition in pharmaceuticals: cross-national evidence from new drug diffusion," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 231-250.
  13. Patricia M. Danzon & Y. Richard Wang & Liang Wang, 2003. "The Impact of Price Regulation on the Launch Delay of New Drugs - Evidence from Twenty-Five Major Markets in the 1990s," NBER Working Papers 9874, National Bureau of Economic Research, Inc.
  14. Paul Contoyannis & Jeremiah Hurley & Paul Grootendorst & Sung-Hee Jeon & Robyn Tamblyn, 2005. "Estimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, Canada," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 909-923.
  15. Nina Pavcnik, 2002. "Do Pharmaceutical Prices Respond to Potential Patient Out-of-Pocket Expenses?," RAND Journal of Economics, The RAND Corporation, vol. 33(3), pages 469-487, Autumn.
  16. Desiraju, Ramarao & Nair, Harikesh S. & Chintagunta, Pradeep, 2004. "Diffusion of New Pharmaceutical Drugs in Developing and Developed Nations," Research Papers 1950, Stanford University, Graduate School of Business.
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