ABSTRACT
BACKGROUND: Since 2012, the pharmaceutical reimbursement legislation in Germany has been applying external reference pricing that uses country-specific economic weights for foreign prices. However, the law does not specify technical details. Therefore, we develop a proposal on how national income weights can be taken into consideration. AREAS COVERED: We develop weighting schemes that draw on gross domestic product per capita and adjust for purchasing power parities and exchange rates. In a second step, we populate the weighting schemes with economic data as well as with the price data for a pharmaceutical product (abiraterone acetate). Weighting the price of abiraterone acetate by gross domestic product per capita indicates potential price differentials of up to 43 percentage points across European prices in the German basket. EXPERT COMMENTARY: The weighting of foreign pharmaceutical prices by economic indicators, i.e. gross domestic product per capita, can capture economic differences across countries. It would also allow for differential Ramsey pricing which might foster innovation.
Subject(s)
Drug Costs , Economics, Pharmaceutical , Reimbursement Mechanisms/economics , Abiraterone Acetate/economics , Commerce/economics , Germany , Gross Domestic Product , Humans , Reimbursement Mechanisms/legislation & jurisprudenceABSTRACT
A number of publications on publication bias or selected outcomes reporting have led critics to doubt that the pharmaceutical industry is able to remain objective in its research activities. This paper discusses the prerequisites for objective research and to what extent these are met by research projects conducted by the pharmaceutical industry. Problems with meeting objectivity criteria on the part of the pharmaceutical industry will be highlighted, distinguishing between industrial research activities themselves (i.e., studies) and the publication of data resulting from such research. The aim of the discussion is to illustrate how and which research-guiding conditions can ensure that sponsors indeed meet the criteria for objective research.
