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Effect of deregulation on the prices of nicotine replacement therapy products in Finland

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  • Aalto-Setälä, Ville
  • Alaranta, Antti

Abstract

Objective The sales of nicotine replacement therapy (NRT) products were deregulated in Finland in February 2006. Previously all medications were sold only in pharmacies, and retail mark-ups and prices were fixed; following deregulation pricing of NRT products has been free. Further more, grocery shops, petrol stations and kiosks are now licensed to sell NRT products. The objective of this study is to evaluate the impact of deregulation on prices of NRT products.Methods We utilized price data on NRT products (n = 2106) from pharmacies, grocery shops, kiosks and petrol stations. Market prices are compared with former regulated prices, as are the prices at different types of outlets. We examined the relationship between competition and prices by regression analysis.Results The average price of NRT products decreased 15% after deregulation. About half of the price decrease was due to exemption of NRT products from the pharmacy fee as part of deregulation, and the other half to increased competition. The least expensive NRT products are obtainable in hypermarkets; however, pharmacies have the largest variety.Conclusions Deregulation of NRT products in Finland was successful in that the prices of these products have decreased and their availability increased. Based on international experience, however, it is not clear whether these decreased prices and increased availabilities have increased smoking cessation.

Suggested Citation

  • Aalto-Setälä, Ville & Alaranta, Antti, 2008. "Effect of deregulation on the prices of nicotine replacement therapy products in Finland," Health Policy, Elsevier, vol. 86(2-3), pages 355-362, May.
    • Handle: RePEc:eee:hepoli:v:86:y:2008:i:2-3:p:355-362
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    References listed on IDEAS

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    1. Thorndike, A.N. & Biener, L. & Rigotti, N.A., 2002. "Effect on smoking cessation of switching nicotine replacement therapy to over-the-counter status," American Journal of Public Health, American Public Health Association, vol. 92(3), pages 437-442.
    2. Levy, David T. & Hyland, Andrew & Higbee, Cheryl & Remer, Lillian & Compton, Christine, 2007. "The role of public policies in reducing smoking prevalence in California: Results from the California Tobacco Policy Simulation Model," Health Policy, Elsevier, vol. 82(2), pages 167-185, July.
    3. van Baal, Pieter H.M. & Brouwer, Werner B.F. & Hoogenveen, Rudolf T. & Feenstra, Talitha L., 2007. "Increasing tobacco taxes: A cheap tool to increase public health," Health Policy, Elsevier, vol. 82(2), pages 142-152, July.
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