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Incorporating Life-cycle Price Modelling into Pharmaceutical Cost-effectiveness Evaluations

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  • Michele Pistollato

Abstract

Why might the launch price of a new drug be a poor indicator of future expenditure for a drug? Which are the factors that determine the future prices and market shares of a drug? Understanding the answers to these questions can be crucial when conducting cost-effectiveness analyses i.e. when studying if it is desirable to publicly fund reimburse a new drug. This paper models and studies the price of a new drug along its life-cycle, from launch to discontinuation, to understand how the price of the drug evolves and to help inform cost-effectiveness evaluations.

Suggested Citation

  • Michele Pistollato, 2015. "Incorporating Life-cycle Price Modelling into Pharmaceutical Cost-effectiveness Evaluations," Grant-Funded Research 001632, Office of Health Economics.
    • Handle: RePEc:ohe:grafun:001632
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    Keywords

    Incorporating Life-cycle Price Modelling into Pharmaceutical Cost-effectiveness Evaluations;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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