Which factor reduces pharmaceutical expenditure, number of entrants or price variance? Updated generic drug markets in South Korea.

IF 2.7 3区 经济学 Q1 ECONOMICS
Kyung-Bok Son
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Abstract

Background: Introducing more generics has been a successful strategy for lowering pharmaceutical prices and expenditure. However, the effect of the strategy depends on the pricing schemes for generics. We aimed to update the South Korean generic markets in terms of effective competition, and to examine the effects of number of manufacturers and price variance on pharmaceutical expenditure.

Methods: We constructed balanced panel data provided by the Health Insurance Review and Assessment Service covering 726 reimbursed substances from 2019 to 2023. We developed original indicators to analyze the generic markets: the maximum-minimum price variance (MMPV) and the maximum-weighted price variance (MWPV). Panel regression with fixed and time-fixed effects was used.

Results: Over the study period, the number of manufacturers increased from 17.81 in 2019 to 20.98 in 2020 and then decreased to 18.70 in 2023. The MMPV increased from 204.70 in 2019 to 230.07 in 2022 and then decreased slightly to 225.34 in 2023. The MWPV increased from 59.70 in 2019 to 72.58 in 2023. Two types of segmented markets were noteworthy: low use of low-cost generics with sufficient manufacturers and high use of low-cost generics with insufficient manufacturers. In the fixed and time-fixed effects panel analyses, the MWPV presented a negative association with the number of manufacturers and a positive association with the MMPV.

Conclusions: A newly introduced tiered pricing scheme, designed to differentiate generic prices, was associated with a decrease in the number of manufacturers and an increase in price dispersion. The pricing schemes for generics should be designed with price variance in mind and limit the number of too many generics in South Korea.

哪个因素会减少药品支出:进入者数量还是价格差异?韩国仿制药市场的最新情况。
背景:引入更多非专利药是降低药品价格和开支的成功策略。然而,该战略的效果取决于仿制药的定价方案。我们旨在更新韩国仿制药市场的有效竞争情况,并研究生产商数量和价格差异对药品支出的影响:我们构建了由健康保险审查和评估服务机构提供的平衡面板数据,涵盖 2019 年至 2023 年的 726 种报销物质。我们开发了分析仿制药市场的原创指标:最大最小价格差异(MMPV)和最大加权价格差异(MWPV)。我们使用了具有固定效应和时间固定效应的面板回归:在研究期间,生产商数量从 2019 年的 17.81 家增至 2020 年的 20.98 家,然后降至 2023 年的 18.70 家。市场销售量从 2019 年的 204.70 增加到 2022 年的 230.07,然后略微下降到 2023 年的 225.34。总市盈率从 2019 年的 59.70 增至 2023 年的 72.58。值得注意的是两类细分市场:低成本仿制药使用率低且生产商充足,以及低成本仿制药使用率高且生产商不足。在固定效应和时间固定效应面板分析中,MWPV 与生产商数量呈负相关,而与 MMPV 呈正相关:结论:为区分仿制药价格而新推出的分级定价方案与生产商数量减少和价格分散度增加有关。仿制药定价方案的设计应考虑到价格差异,并限制韩国仿制药数量过多。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.90
自引率
4.20%
发文量
59
审稿时长
13 weeks
期刊介绍: Health Economics Review is an international high-quality journal covering all fields of Health Economics. A broad range of theoretical contributions, empirical studies and analyses of health policy with a health economic focus will be considered for publication. Its scope includes macro- and microeconomics of health care financing, health insurance and reimbursement as well as health economic evaluation, health services research and health policy analysis. Further research topics are the individual and institutional aspects of health care management and the growing importance of health care in developing countries.
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