We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

External reference pricing in pharmaceutical industry - Essay Example

Comments (0)
Summary
External Reference Pricing in Pharmaceutical Industry Introduction In the marketing practice, marketers largely focus on four key elements that include the product itself, the price of the product, the place, or the location where the product or service is made available for the customers and the promotional activities that are geared towards creating awareness of the product and informing the target audience about its unique attributes…
Download full paper
GRAB THE BEST PAPER
External reference pricing in pharmaceutical industry
Read TextPreview

Extract of sample
External reference pricing in pharmaceutical industry

Download file to see previous pages... 2013). Under competition, marketers tend to consider the price of other competing product/ service whilst setting the new price and this strategy is called external reference pricing. According to Trivedi (2002), the idea behind this pricing strategy is that the price should not be too high or low to the competing products/ services. In the pharmaceutical industry, external reference pricing, is commonly applied in order for the government to tame the prices of pharmaceutical products that are protected by intellectual property rights and even enable the pharmaceutical companies to benefit from a created monopoly arising from the patented drugs. This present study seeks to investigate the flaws of external reference pricing strategy in the pharmaceutical industry from the point of view of PainCeptor Pharma in Canada, and it will seek to provide a recommendation to the Canadian government on whether to continue using this strategy or not in the pricing of pharmaceutical products. ...
On the other hand, the Patented Medicine Prices Review Board (PMPRB) is an independent quasi-judicial body that was established by the Canadian parliament in 1987. Therefore, the board regulates the company’s pricing strategy and it recommends the prices for prescription and non-prescription drugs that are sold within the borders of Canada (Ruggeri and Nolte, 2013). One of the principles of pharmaceutical pricing in Canada by the PMPRB is that if a price is found to be excessive, the Board will call for a public hearing against the company and then order it to reduce its prices or offset some of the excess revenue earned (Ruggeri and Nolte, 2013). According to Ruggeri and Nolte (2013), the board applies external referencing pricing when a new drug is regarded as a major breakthrough, or there is a significant or moderate improvement on an already existing drug. In such scenarios, the board applies the median international price comparison test. This test considers the prices of other related patented drugs that have the same dosage and strengths that are being sold in seven specific countries that include the United States, the United Kingdom, Germany, Sweden, Italy, France, and Switzerland. The median price calculated from these seven countries determines the maximum average potential price that the board will stipulate for the new or improved drug that has been manufactured by PainCeptor Pharma. If the drug is only in use in less than five countries, the international median price is calculated on an interim basis but it will be subject to a review after three years putting into consideration changes that have occurred on the consumer price index ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economical aspect in pharmaceutical industry
An interesting question comes to our mind when pharmaceutical industry and ethics are correlated with each other: on the one hand it is cannot be questioned that medicine could be unethical, because this field protects and saves our lives; but on the other hand, very often not a human health or life is of central concern for modern medics, but profits gaining.
2 Pages(500 words)Essay
The Global Pharmaceutical Industry
The essay "the global pharmaceutical industry" aims to integrate appropriate theory to critically analyse the macro-environmental factors that have influenced the development of the global pharmaceutical industry during the period of the case.Macro-environmental factors are socio- cultural, political, legal, environmental, economic and technological.
3 Pages(750 words)Essay
The US Pharmaceutical Industry
The United States pharmaceutical industry can be considered as a highly competitive market. This is demonstrated through several factors that collectively lead to its positive performance such as market trends, profit, and productivity. Ultimately, the competitiveness of the industry is fundamentally ensured by the fact that it relies on research.
3 Pages(750 words)Essay
Challenges to the pharmaceutical industry's blockbuster-driven business model, and the effectiveness of GlaxoSmithKline's strate
According to this model, the pharmaceutical company needs to invest huge sums of money in their own research and development process. This model helps the pharmaceutical company to invest the same in several projects out of which only few would turn out to be successful.
8 Pages(2000 words)Essay
Global pharmaceutical industry
Due to the every increasing cost and expenses that adversely affected the company's profit margin, even though the company was having substantial increase in turnover and revenues, the management decided to launch a workforce reduction program in the year 2003.
10 Pages(2500 words)Essay
Pharmaceutical Industry
However, prior to testing the drug in humans for the first time the following requirements have to be met: The study drug must have undergone preclinical research in the laboratories needs to be undertaken to determine which compounds will result in a chemical effect on the disease, and the drug compound will have to have been placed in a living biological system to check for safety in human disease, which involves testing the compound in at least two animals.
2 Pages(500 words)Essay
The pharmaceutical industry
With companies losing patents over blockbuster drugs without adding new drugs to their repertoire, the profits are bound to fall. Then there is the negative publicity attracted by the adverse side-effects
2 Pages(500 words)Essay
Seethetwoarticleslistedattheendofthisdocument.Basedonthematerialcoveredinthemicroeconomicsclass,provideaneconomicanalysisofthepolicyscenariogiven below
The United Kingdom is the country that is widely used by other countries as reference point in External Price Referencing. Most countries which use the External Price Referencing base it on statutory regulations or legislated rules. Some
4 Pages(1000 words)Essay
Pharmaceutical Industry

According to the author, the production of a drug in this industry involves testing to eliminate any chances of dangerous or life-threatening side effects in the final product. The Food and Drug Administration of the US Government tests and approves all pharmaceutical products in America before such products reach the pharmaceutical market.

3 Pages(750 words)Essay
Counterfeit Pharmaceutical Drug Industry
However, this regulation is constantly facing a conflict between its own efficiency and fairness of social objectivity (Baldwin et al., 2012, p. 31). Thus, setting the extent of counterfeit drug regulation is important through critical synthesis of both
13 Pages(3250 words)Essay
Let us find you another Essay on topic External reference pricing in pharmaceutical industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us