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Pharmaceutical Pricing, Reimbursement, and Prescribing News in the Third Quarter of 2006

Published by: Decision Resources

Published: Dec. 15, 2006 - 22 Pages

Price reduced due to age.

Table of Contents



Executive Summary

Strategic Considerations

Stakeholder Implications




Introduction




United States

Employer-Sponsored Drug Benefits

Medicare Prescription Drug Benefit

Criticism of Drug Prices for the Uninsured

Pressure on Drug Prices

Drug Importation

Generic Clopidogrel

Wal-Mart Pioneers Low-Priced Generics Program

Calls for Biogeneric Insulin and Human Growth Hormone

Discount Drug Program in California

European Union

GlaxoSmithKline Experiments with Flexible Pricing




France

Industry Remains Target for Aggressive Cost Containment

Sustained Growth of the Generics Market




Germany

Sales Trends

Plans for an Overhaul of the German Health Care System

Many Products Exempted from Copayments

Dereimbursement of Short-Acting Insulin Analogues




Italy

Imposition of Temporary Price Cuts




Spain

Industry Concern over New Medicines Law

Call for Cancellation of Historical Price Cuts




United Kingdom

Controversy over Cancer Drugs Rejected by NICE

New Candidates for Single Technology Appraisals




Japan

Continued Threat of Annual Price Revisions

Expansion of the Generics Market

Outlook and Implications for the Pharmaceutical Industry




Tables

1. Key Features of Standard Medicare Part D Drug Benefit, 2006 and 2007

2. Factors Involved in Pharmaceutical Sales Trend in Germany, 2005

3. Out-of-Pocket Payments for Reference-Priced Drugs in Germany

4. Candidates for Single Technology Appraisal by NICE, September 2006




Figures

1. U.S. Employers’ Main Reasons for Carving In Their Pharmacy Benefits

2. U.S. Employers’ Views on the Main Causes of Increasing Drug Expenditures

3. U.S. Employers’ Views on the Most Effective Means for Containing Drug Expenditures

4. Federal Supply Schedule and Canadian Prices of Select Prescription Drugs as a Percentage of Average U.S. Cash Prices

5. Projected Savings from Cost-Containment Measures in France, 2007

Abstract

Introduction

In the major pharmaceutical markets, efforts to curb drug expenditures and to improve patient access to medications were the driving forces in the third quarter of 2006. In the United States, adjustments to the Medicare Part D prescription drug benefi t were announced. European governments focused on cost-containment measures and increasing generics usage, while the Japanese government continued its deliberations on whether to introduce annual price revisions.

Questions Answered in This Spectrum Report

Price sensitivity is growing in the world’s major pharmaceutical markets. In an increasingly hostile environment, pharmaceutical companies will need to think creatively about their pricing strategies in each market. What future pricing strategies should companies consider in the

U.S. and European markets? How have Amgen, Genentech, and GlaxoSmithKline responded to increasing price sensitivity? In all the major pharmaceutical markets, increasing the use of generic drugs will be a priority for payers. Which countries have relatively immature generics markets, and how will government intervention stimulate their growth? What factors will fuel the growth of the generics market in the United States?

Governments in most of the major pharmaceutical markets have long used their powers to reduce drug prices. How will recent cost-containment measures in Germany, Italy, and Spain affect the pharmaceutical markets in those countries? How is the German government proposing to overhaul its health care system, and what reforms will target the pharmaceutical industry?

Scope
  • Third quarter news in 2006: major developments in the pharmaceutical pricing, reimbursement, and prescribing environment in the United States, Europe (France,
  • Germany, Spain, Italy, and the United Kingdom), and Japan.
  • Outlook: an assessment of the outlook and implications for the pharmaceutical industry in the markets under study.


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