A Comparative Study of Pharmaceutical Pricing Policies

In collaboration with WHO and OECD-led initiatives on pharmaceutical pricing and access, this study will synthesize country policy approaches used to control drug prices. To provide insight and context, it will classify and critically appraise various price practices of manufacturers and the strategies policymakers use in response to control prices (e.g. external/therapeutic reference pricing, value-based pricing, profit regulation, statutory price limits, negotiated pricing under supply contracts, and free market pricing). In addressing pricing policies, the study will consider the unique nature of pharmaceutical goods and pharmaceutical markets, vis-à-vis other sectors of the economy; costs, incentives and policies concerning pharmaceutical research and development; pharmaceutical production costs, market structure, and competition; and, the regulatory theory and economics of price regulation in patented and non-patented markets. The findings will not only highlight what countries do, but how their practices likely affect key market outcomes. An international forum will convene experts from the OECD, WHO, European Medicines Agency, and 14 countries in June 2016 to inform the project.