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Competition and price among brand-name drugs in the same class: A systematic review of the evidence

PLoS Medicine Aug 07, 2019

Sarpatwari A, et al. - Researchers conducted a systematic literature review of the peer-reviewed health policy and economics literature to better understand the interaction between new drug entry and intraclass drug prices. A total of 10 empirical investigations were included, with 1 study each on antihypertensives, anti-infectives, central nervous system stimulants for attention deficit/hyperactivity disorder, disease-modifying therapies for multiple sclerosis, histamine-2 (H2) blockers, and tumor necrosis factor (TNF) inhibitors; 2 studies on cancer medications; and 2 studies on all marketed or new drugs. None of the studies reported that brand–brand competition decreased list prices of current drugs within a class. The conclusions of two studies recommended that such competition may help limit how new drug prices were set. Other studies offered evidence that the brand–brand competition was propitiated by the relative quality of competing drugs and the extent to which they are marketed, with safer or more efficient new drugs and higher marketing correlated with higher intraclass list prices. Hence, policies to expand the brand–brand competition in the US pharmaceutical market, such as quickening approval of non-first-in-class drugs, would probably not lead to lower drug list prices absent additional structural reforms.

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