Revisiting the Relationship Between Price Regulation and Pharmaceutical R&D Investment.

ABSTRACT:

Background

A trade-off exists between affordability of pharmaceutical products today and incentives for firms to provide new and better drugs in the future; an activity that prior studies suggest correlates with profitability, which in turn depends on price regulation.

Objective

In this paper we re-examined the relationship between price regulation and pharmaceutical research and development (R&D) intensity, and explored the role of profitability and cash flow in mediating this relation using the latest available data from 2000 to 2017 for the 10 most innovative pharmaceutical companies.

Methods

Following a framework similar to a previous study, we exploited stylized facts about sales volumes in Europe and USA, which give rise to variation in exposure to price regulat

SUBMITTER: Shaikh M 

PROVIDER: S-EPMC7902591 | biostudies-literature | 2021 Mar

REPOSITORIES: biostudies-literature