Deregulation on branded and generic drugs price and its effect: a study of Chinese pharmaceutical market

IF 1.8 Q3 HEALTH POLICY & SERVICES

International Journal of Health Governance Pub Date : 2022-11-22 DOI:10.1108/ijhg-12-2021-0123

Lu Liu

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引用次数: 1

Abstract

PurposeThis research studies the effect of deregulation of price cap in pharmaceutical market. Price regulation (either through price cap or reference price) is common practice in the pharmaceutical market but recently there are increasing voices calling for deregulation claiming that deregulation could help in lowering drug price and increase revenue of pharmaceutical firms. Upon those callings, Chinese government removed the price cap regulation in June 2015. The author uses this natural policy experiment to study this effect.Design/methodology/approachIn this study, the author applied the interrupted time series analysis (ITSA) on the revenue data of nine categories of both generic and branded drugs in China from March 2011 to August 2016 (the time frame includes both before and after of the initialization of the deregulation) and analyzed the effect of deregulation.FindingsThe results showed that, whether the revenue of drugs will increase or decrease after the deregulation of price cap depends on the level of competition and the change of patterns of the branded and generic drugs are different. When HHI (Herfindahl–Hirschman index) is sufficiently low (competition is high), revenue does not change as a result of deregulation, when HHI is moderately low (moderate competition), revenue from generic drugs will decrease significantly and revenue from branded drugs will increase significantly, and when HHI is high (low competition), revenue from generic drugs will increase significantly and revenue from branded drugs will decrease significantly.Originality/valueThis is a unique study with a unique data set. Most previous studies focus on regulation of drug price and analyze how this may affect drug revenue; however, this is a natural policy experiment of de-regulation. Moreover, previously most studies focus on reference pricing regulation and this is price-cap, a different mechanism that is rarely studied. The originality/value is high of this article.

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中国药品市场管制对品牌药和仿制药价格的影响

目的研究放松药品市场价格上限管制的效果。价格管制（通过价格上限或参考价格）是制药市场的常见做法，但最近越来越多的人呼吁放松管制，声称放松管制有助于降低药品价格并增加制药公司的收入。根据这些呼吁，中国政府于2015年6月取消了价格上限规定。作者利用这个自然政策实验来研究这种效应。设计/方法/方法在本研究中，作者应用中断时间序列分析（ITSA）对2011年3月至2016年8月中国九类仿制药和品牌药的收入数据（时间框架包括放松管制开始前后）进行了分析，并分析了放松管制的效果。研究结果表明，放开价格上限后，药品的收入是增加还是减少取决于竞争水平以及品牌药和仿制药模式的变化。当HHI（Herfindahl–Hirschman指数）足够低（竞争很高）时，收入不会因为放松管制而改变，当HHI适度低（适度竞争）时，仿制药收入将显著减少，品牌药收入将显著增加，当HHI高（竞争很低）时，仿制药收入将大幅增加，品牌药收入将大幅减少。独创性/价值这是一项具有独特数据集的独特研究。以前的大多数研究都集中在药品价格监管上，并分析这可能如何影响药品收入；然而，这是一次自然的去监管政策试验。此外，以前大多数研究都集中在参考定价监管上，这就是价格上限，这是一种很少研究的不同机制。这篇文章的独创性/价值很高。

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

International Journal of Health Governance HEALTH POLICY & SERVICES-

CiteScore

3.30

自引率

15.40%

发文量

期刊介绍： International Journal of Health Governance (IJHG) is oriented to serve those at the policy and governance levels within government, healthcare systems or healthcare organizations. It bridges the academic, public and private sectors, presenting case studies, research papers, reviews and viewpoints to provide an understanding of health governance that is both practical and actionable for practitioners, managers and policy makers. Policy and governance to promote, maintain or restore health extends beyond the clinical care aspect alone.