Economic perspectives in pharmaceuticals: market dynamics and pricing of medications

Abstract

Background: Analysing the modern pharmaceutical market is crucial for making management decisions, forming strategies, and ensuring competitiveness in this sector. Aim: Determination of the impact of various economic factors of the pharmaceutical industry on market conditions and development of economically justified areas of cost formation in the pharmaceutical market. Materials and Methods: A systematic review of scientific publications in the search databases Scopus, Web of Science, Medline, and Google Scholar was conducted. Statistical research methods used are observation, index and regression analysis. The methods of benchmarking analysis and interpretation were applied. Results: A detailed examination of published works by scientists and doctors has highlighted critical problems in forming the cost of medicinal products in the pharmaceutical market. The use of medicines worldwide and in individual countries has been considered, and a trend of increasing revenue in the global pharmaceutical market has been identified. The main approaches to forming pricing models in the pharmaceutical industry have been summarised. The peculiarities of the formation of EU legislation on the registration, production, sale, and quality control of medicinal products have been highlighted. The characteristics of the functioning of reimbursement programmes in certain countries worldwide have been described. A benchmarking analysis of the pharmaceutical market economy in Ukraine and the European Union has been conducted. Conclusions: The main directions for improving pricing policy in the modern pharmaceutical market have been outlined. It has been established that the main directions for forming the cost of medicinal products are expenses on research and development, costs of goods sold and patent expenses, marketing and advertising, regulatory and permitting procedures, and market competition.