Price Fixing and the Pharmaceutical Industry
State intervention in the pharmaceutical industry: social advance or threat to innovation?
By
Ivan Topalovic
Introduction
1/ The Product A/ European level, the “EMEA” B/ R.O.W. a) The Followers b) The non-Followers
2/ The Price A/ Worldwide parameters B/ Examples of price fixing per country
3/ The Place
4/ The Promotion
Conclusion
Appendix I Chronology in therapeutic innovation
Appendix II Major pharmaceutical companies mergers / acquisitions
Appendix III Evolution in the R&D in million dollars
Appendix IV Overview of pharmaceutical regulations in Europe
Introduction:
The pharmaceutical industry is a big money moving industry. When we hear about the mergers and acquisitions in this field, we are facing ten digits numbers, where a number such as a billion is more than common. (Appendix II)
At the core of this business stands the pharmaceutical product, the medicine. To create this medicine, molecules are needed. We can see from Appendix I that the number of new molecules has decreased drastically in the last ten years.
The pharmaceutical industry has to maximize its profits either on the existing products, or with the new developments.
I will try to show in this study that despite the very risky characteristic of this market in terms of amounts of money involved and potential failure, the companies are not free to fix their prices and enter the market freely and efficiently.
Although they try to increase revenues at every step of the marketing process, i.e. the 4 P’s (product, price, place and promotion), the governments all over the world also interfere in all these steps, making it more expensive, more difficult and increasing the level of uncertainty regarding the market access.
In this field, companies would like to push towards the efficient side of the market, when states are concerned about equality towards healthcare.
We will study the different levels of state
By
Ivan Topalovic
Introduction
1/ The Product A/ European level, the “EMEA” B/ R.O.W. a) The Followers b) The non-Followers
2/ The Price A/ Worldwide parameters B/ Examples of price fixing per country
3/ The Place
4/ The Promotion
Conclusion
Appendix I Chronology in therapeutic innovation
Appendix II Major pharmaceutical companies mergers / acquisitions
Appendix III Evolution in the R&D in million dollars
Appendix IV Overview of pharmaceutical regulations in Europe
Introduction:
The pharmaceutical industry is a big money moving industry. When we hear about the mergers and acquisitions in this field, we are facing ten digits numbers, where a number such as a billion is more than common. (Appendix II)
At the core of this business stands the pharmaceutical product, the medicine. To create this medicine, molecules are needed. We can see from Appendix I that the number of new molecules has decreased drastically in the last ten years.
The pharmaceutical industry has to maximize its profits either on the existing products, or with the new developments.
I will try to show in this study that despite the very risky characteristic of this market in terms of amounts of money involved and potential failure, the companies are not free to fix their prices and enter the market freely and efficiently.
Although they try to increase revenues at every step of the marketing process, i.e. the 4 P’s (product, price, place and promotion), the governments all over the world also interfere in all these steps, making it more expensive, more difficult and increasing the level of uncertainty regarding the market access.
In this field, companies would like to push towards the efficient side of the market, when states are concerned about equality towards healthcare.
We will study the different levels of state