The Impact of Generic Reference Pricing Interventions in the Statin Market

31 Pages Posted: 19 Jul 2007

See all articles by Jaume Puig-Junoy

Jaume Puig-Junoy

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Date Written: December 2005

Abstract

The objective of this study was to evaluate the intended and unintended impact on pharmaceutical use and sales of three public financing reforms applied to the prescription of statins: a Spanish generic reference pricing (RP) system for lovastatin and simvastatin, and two competing policies introduced by the Andalusian Public Health Service (APHS) for all statins, first a maximum consumer price (MCP) and then a so called quality prescribing incentive for general practitioners (MCP plus PI). This study is designed as an observational, retrospective, interrupted time series analysis with comparison series (APHS and the rest of Spain) of 46 monthly drug use and sales ratios from January 2001 to October 2004 for each active ingredient in the group of statins. RP has been effective at reducing the volume of sales growth of the off-patent statins, yet its overall impact on sales of all statins has been relatively modest. The quantity and volume of sales impact heavily depends on regulatory RP details such as when the system is introduced, how often it is updated, and how the reference price is calculated.

Keywords: Pharmaceutical sales, generic medicines, pharmaceutical reference pricing, statins

JEL Classification: I18, H5

Suggested Citation

Puig-Junoy, Jaume, The Impact of Generic Reference Pricing Interventions in the Statin Market (December 2005). Available at SSRN: https://ssrn.com/abstract=1001653 or http://dx.doi.org/10.2139/ssrn.1001653

Jaume Puig-Junoy (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

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