Ten Myths about the Market for Prescription Drugs

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No. 230

Friday, October 01, 1999

by Robert Goldberg

Notes

  1. Ludwig von Mises, A Treatise on Human Action (New York: Ludwig von Mises Institute, 1997).
  2. F. Lichtenberg, "The Effect of Pharmaceutical Utilization and Innovation on Hospitalization and Mortality," National Bureau of Economic Research, Paper No. 5418, January 1996.
  3. Tennvall G. Ragnarson and G. Karlsson, "Cancer Treatment in Sweden - Costs of Drugs, Inpatient and Outpatient Care from 1985 to 1996 and Cost-Effectiveness of New Drugs," Oncology, Vol. 37, No. 5, 1998, pp. 447-53.
  4. S. M. Lee et al., "Recombinant Human Granulocyte Colony-Stimulating factor (Filgrastim) Following High-Dose Chemotherapy and Peripheral Blood Progenitor Cell Rescue in High-grade Non-Hodgkin's Lymphoma: Clinical Benefits at No Extra Cost," British Journal of Cancer, Vol. 77, No. 8, April 1998, pp. 1294-99.
  5. D. B. Mark et al., "Economic Assessment of Platelet Glycoprotein IIb/IIIa Inhibition for Prevention of Ischemic Complications of High-Risk Coronary Angioplasty," Circulation, Vol. 94, No. 4, August 15, 1996, pp. 629-35.
  6. Secondary and Tertiary Prevention of Stroke Patient Outcome Research Team: 9th Progress Report, paper delivered at Agency for Health Care Research, September 1995.
  7. P. J. Neumann et al., "Cost-Effectiveness of Donepezil in the Treatment of Mild or Moderate Alzheimer's Disease," Neurology, Vol. 52, No. 6, April 12, 1999, pp. 1138-45.
  8. R. L. Ernst et al., "Cognitive Function and the Costs of Alzheimer's Disease. An Exploratory Study," Journal of the Archives of Neurology, Vol. 54, No. 6, June 1997, pp. 687-93.
  9. A. H. Anis et al., "Modelling the Potential Economic Impact of Viral Load-Driven Triple Drug Combination Antiretroviral Therapy," Pharmacoeconomics, Vol. 13, No. 6, June 1998, pp. 697-705.
  10. Ibid.
  11. W. H. Reid, "New vs. Old Antipsychotics: The Texas Experience," Journal of Clinical Psychiatry, Vol. 60, Supp. 1, 1999, pp. 23-25 and pp. 28-30.
  12. R.G. Frank et al., "Price Indexes for the Treatment of Depression," in Jack Triplett, ed., Measuring the Prices of Medical Treatments (Washington, D.C.: Brookings Institution Press, 1999).
  13. IMS Retail and Provider Perspective, IMS Health, Scottsdale, Ariz., 1998.
  14. Ibid.
  15. General Accounting Office, "Prescription Drug Prices: Official Index Overstates Producer Price Inflation," Letter Report, April 28, 1995, GAO/HEHS-95-90.
  16. The Value of Pharmaceuticals (New York: Boston Consulting Group, 1993).
  17. Patricia Danzon, "The Uses and Abuses of International Price Comparisons," in R. B. Helms, ed., Competitive Strategies in the Pharmaceutical Industry (Washington, D.C.: AEI Press, 1996).
  18. "Prescription Drug Pricing in the United States: Drug Companies Profit at the Expense of Older Americans," Minority Staff Report, Committee on Government Reform and Oversight, U.S. House of Representatives, October 20, 1998.
  19. General Accounting Office, "Drug Prices: Effects of Opening Federal Supply Schedule for Pharmaceuticals Are Uncertain," Washington, D.C., HEHS-97-60, June 11, 1997; www.gao.gov/AIndexFY97.
  20. General Accounting Office, "Medicaid: Changes in Best Price for Outpatient Drugs Purchased by HMOs and Hospitals," Washington, D.C., GAO/HEHS-94-194FS, 1994.
  21. Congressional Budget Office, "How the Medicaid Rebate on Prescription Drugs Affects Pricing in the Pharmaceutical Industry," Washington, D.C., 1996.
  22. See Mark E. Litow, "Vouchers as an Option in Medicare," Milliman & Robertson, Inc., and "Prescription Drugs for Seniors: Private Health Plans Could Provide Coverage at No Extra Cost," summary of findings of the Milliman & Robertson study, National Center for Policy Analysis, both forthcoming.
  23. Heinz Redwood, Price Regulation and Pharmaceutical Research (Suffolk, Eng.: Oldwicks Press, 1993); and David Gross et al., "International Spending Controls: France, Germany, Sweden and the United Kingdom," Health Care Financing Review, Vol. 15, No. 3, 1994, pp. 127-40.
  24. "ACE-Inhibitors Cost-Effective in CHF, " Scrip Magazine, No. 284, 1993, p. 60.
  25. C. Z. Louis et al., "Patterns of Hospital Care and Physician Perspectives from an Italian, Japanese and USA Hospital," American Journal of Medical Quality, Vol. 11, No. 3, Fall 1996, pp. 123-34.
  26. Lacy Glenn Thomas III, "Japan in Pharmaceuticals," in Pharmaceutical Benefit Scheme and Quality Care (Tokyo: Pfizer Health Research Foundation, 1995).
  27. Harry Schwartz, "National Health Insurance: Ill Health for the Industry?" Pharmaceutical Executive, March 1992, pp. 20-23.
  28. E. M. Kolassa, personal communication, August 24, 1999.
  29. A. J. Collins et al., "Trends in Anemia Treatment with Erythropoietin Usage and Patient Outcomes," American Journal of Kidney Disease, Vol. 32, No. 6, Supp. 4, December 1998, pp. S133-41.
  30. Ibid.
  31. S. B. Soumerai et al., "Effects of Medicaid Drug Payment Limits on Admissions to Hospitals and Nursing Homes," New England Journal of Medicine, Vol. 1, No. 2, October 10, 1991, p. 337.
  32. S. B. Soumerai et al., "Effects of a Limit on Medicaid Drug-Reimbursement Benefits on the Use of Psychotropic Agents and Acute Mental Health Services by Patients with Schizophrenia," New England Journal of Medicine, Vol. 331, No. 10, September 8, 1994, pp. 650-55.
  33. Lacy Glenn Thomas III, "Implicit Industrial Policy: The Triumph of Britain and the Failure of France in Global Pharmaceuticals, " School of Business, Emory University, February 1993.
  34. Ibid., page 15.
  35. "Italy, France Top 'Useless' Drug League," Scrip newsletter, October 28, 1993, p. 5.
  36. Ibid.
  37. Robert Chew, Senior Research Analyst, Association of the British Pharmaceutical Industry, personal communication, October 20, 1993.
  38. "German Brief," Chemist and Druggist, November 5, 1993, pp. 12-15.
  39. Henry G. Grabowski and John M. Vernon, "Returns on New Drug Introductions in the 1980s," American Enterprise Institute on Competition in the Pharmaceutical Industry, Duke University, October 27, 1993, Supp. Appendix, p. 3.
  40. Statement of Judith L. Wagner, Ph.D., Senior Associate, Health Program, Office of Technology Assessment, before the Special Committee on Aging, Washington, D.C., November 16, 1993, p. 13.
  41. Barbara Ryan, , Pharmaceutical Analyst, BTAlex Brown, presentation at Capitol Hill Briefing on Prescription Drug Price Regulation and Pharmaceutical Innovation, sponsored by the Ethics and Public Policy Center, June 14, Washington, D.C., 1999.