Tuesday, June 8, 2010

[EQ] Generic drug pricing in Canada: Components of the value-chain

Generic drug pricing in Canada: Components of the value-chain



Aidan Hollis, Department of Economics, University of Calgary
Discussion Paper May 2010-­
10

Available online PDF [32p.] at: http://bit.ly/9xesIU

"……The problem of obtaining fair pricing for generic drugs has led to a series of regulatory measures in Canadian provinces. This paper offers a new way of thinking about the problems that need to be addressed, by considering three core components of the value chain of getting generic drugs to Canadians:
litigation, production, and pharmacy services.

The paper proposes that each component of this value chain should be paid for separately, using a royalty to reward successful litigation that benefits payers; a Competitive market framework to pay for production; and a transparent, independent regulatory process to set dispensing fees for pharmacies…."

 

Contents

Executive Summary

1. Introduction

2. The key role of litigation and its costs

3. How should we pay for litigation?

    Addressing objections to the royalty system

4. Production costs

    Biologics

5. How should we pay for production?

    How have other countries achieved low generic prices?

6. Pharmacy costs

7. How should we pay for pharmacy services?

    A fair price regulation system

    Rebates

     Can rebates be controlled?

8. Conclusion

References

 

 


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