The Impact of Generic Entry of Pharmaceuticals in Australia.

Autor: Jones AM; Department of Economics, City, University of London, London, England, UK; Centre for Applied Health Economics, Griffith University, Gold Coast, Queensland, Australia. Electronic address: arun.jones@griffith.edu.au., Serra-Sastre V; Department of Economics, City, University of London, London, England, UK; Department Health Policy, LSE, London, England, UK; Office of Health Economics, London, England, UK., Kim H; Centre for Applied Health Economics, Griffith University, Gold Coast, Queensland, Australia.
Jazyk: angličtina
Zdroj: Value in health regional issues [Value Health Reg Issues] 2024 Sep; Vol. 43, pp. 101008. Date of Electronic Publication: 2024 Jun 25.
DOI: 10.1016/j.vhri.2024.101008
Abstrakt: Objectives: In this article, we estimate the initial and temporal impacts of generic entry on benchmark drug prices as reimbursed through the Pharmaceutical Benefits Scheme of Australia and the degree to which further generic competition affects these prices under the current regulatory framework.
Methods: We construct a panel data set consisting of 781 Pharmaceutical Benefits Scheme listed drugs over a 95-month time period and use fixed-effect regressions. The dynamic price effects of generic competition are investigated by implementing panel methods.
Results: Our results suggest that generic entry into the Australian pharmaceutical market causes significant initial price reductions of approximately 31% and that successive generic entrants also act to further reduce drug prices. Through subgroup analyses, we identify that the effect of generic competition varies significantly according to the drug's therapeutic group and mode of drug administration and the dynamic analysis indicates that generic entry results in continuous price reductions even after large initial drops.
Conclusions: Generic competition reduces reimbursed drug prices in Australia to a greater extent than previous research has identified, although the average price effects can vary significantly depending on a drug's therapeutic group or mode of drug administration. Prices generally continue to fall significantly over time under the price disclosure mechanism.
Competing Interests: Author Disclosures Author disclosure forms can be accessed below in the Supplemental Material section.
(Copyright © 2024 International Society for Health Economics and Outcomes Research. Published by Elsevier Inc. All rights reserved.)
Databáze: MEDLINE
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